| [X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|--------------------------------------------------------------------------------------|

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------|-------------------------------------------------------------------------------------------|

| Registrant's Telephone Number: |          (662) 563-9311 |
|--------------------------------|----------------------------------------------------------------------|

|   |                                                                              ------------------------------------------ |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           Title of Each Class |   |     |                              Which Registered |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ----------------------------------------------------------------- |                                                  --------------------------------------------------------- |
|-------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                  Large accelerated filer [    ] |                                                                                                       Accelerated filer                   [X] |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                       Non-accelerated filer   [    ] |                                                                                                        Smaller reporting company [    ] |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). |
|--------|---------------------------------------------------------------------------------------------------------|

|   | Yes [   ]       No [ X ] |
|--------|----------------------------------------------------------------------------|

|                Class |                                                      Outstanding at December 31, 2010 |
|-------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Common stock ($5.00 par value) |              2,883,209 Shares |
|--------------------------------|------------------------------------------------------------------------------------------------|

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|                           |                                                                                 |   | Page     |
|--------------------------------|--------------------------------------------------------------------------------------|--------|----------|
| PART I                         |                                                                                 |   |     |
| Item 1                         | Business                                                                             |   | 2        |
| Item 1A                        | Risk Factors                                                                         |   | 14       |
| Item 1B                        | Unresolved Staff Comments                                                            |   | 18       |
| Item 2                         | Properties                                                                           |   | 19       |
| Item 3                         | Legal Proceedings                                                                    |   | 20       |
| Item 4                         | Submission of Matters to a Vote of Security Holders                                  |   | 20       |
|                           |                                                                                 |   |     |
| PART II                        |                                                                                 |   |     |
|                           |                                                                                 |   |     |
| Item 5                         | Market for the Registrant's Common Equity, Related Stockholder Matters and           |   | 20       |
|                           | Issuer Purchases of Equity Securities                                                |   |     |
| Item 6                         | Selected Financial Data                                                              |   | 21       |
| Item 7                         | Management's Discussion and Analysis of Financial Condition and Results of           |   |     |
|                           | Operations                                                                           |   | 22       |
| Item 7A                        | Quantitative and Qualitative Disclosures about Market Risk                           |   |  43 |
| Item 8                         | Financial Statements and Supplementary Data                                          |   |  44 |
| Item 9                         | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |   |  91 |
| Item 9A                        | Controls and Procedures                                                              |   |  91 |
| Item 9B                        | Other Information                                                                    |   |  92 |
|                           |                                                                                 |   |     |
| PART III                       |                                                                                 |   |     |
|                           |                                                                                 |   |     |
| Item 10                        | Directors and Executive Officers of the Registrant                                   |   |  92 |
| Item 11                        | Executive Compensation                                                               |   |  92 |
| Item 12                        | Security Ownership of Management and Related Stockholder Matters                     |   |  92 |
| Item 13                        | Certain Relationships and Related Transactions                                       |   |  93 |
| Item 14                        | Principal Accounting Fees and Services                                               |   |  93 |
|                           |                                                                                 |   |     |
| Part IV                        |                                                                                 |   |     |
|                           |                                                                                 |   |     |
| Item 15                        | Exhibits and Financial Statement Schedules                                           |   |  93 |
| Signatures                     |                                                                                 |   |  93 |
| Index to Exhibits              |                                                                                 |   |  95 |
| EX-3.(B) (EX-3.(B))            |                                                                                 |   |     |
| EX-21 (EX-21)                  |                                                                                 |   |     |
| EX-23 (EX-23)EX-31.1 (EX-31.1) |                                                                                 |   |     |
| EX-31.2 (EX-31.2)              |                                                                                 |   |     |
| EX-32.1 (EX-32.1)              |                                                                                 |   |     |
| EX-99.1 (EX-99.1)              |                                                                                 |   |     |
| EX-99.2 (EX-99.2)              |                                                                                 |   |     |

----

----

| Population  |   |
|-------------|--------|
|        |   |   |   |   |   |   |   |   |   |   |   |   |
|        |   | 2000 |   |   | 1990 |   |   | 1980 |   |   | 1970 |   |
|        |   |   |   |   |   |   |   |   |   |   |   |   |
| DeSoto      |   |   | 107,199 |   |   |   | 67,910 |   |   |   | 53,930 |   |   |   | 35,885 |   |
|        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Panola      |   |   | 34,274 |   |   |   | 29,996 |   |   |   | 28,164 |   |   |   | 26,829 |   |
|        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marshall    |   |   | 34,993 |   |   |   | 30,361 |   |   |   | 29,296 |   |   |   | 24,027 |   |
|        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Quitman     |   |   | 10,117 |   |   |   | 10,490 |   |   |   | 12,636 |   |   |   | 15,888 |   |
|        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tunica      |   |   | 9,277 |   |   |   | 8,164 |   |   |   | 9,652 |   |   |   | 11,854 |   |
|        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mississippi |   |   | 2,844,658 |   |   |   | 2,573,216 |   |   |   | 2,520,698 |   |   |   | 2,216,994 |   |
|        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| PER CAPITA INCOME                                                         |   |
|---------------------------------------------------------------------------|--------|
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DeSoto                                                                    |   |   | 32,393 |   |   |   | 31,891 |   |   |   | 31,589 |   |   |   | 29,623 |   |   |   | 29,318 |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Panola                                                                    |   |   | 25,646 |   |   |   | 22,943 |   |   |   | 22,776 |   |   |   | 20,908 |   |   |   | 20,017 |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marshall                                                                  |   |   | 25,326 |   |   |   | 23,739 |   |   |   | 22,754 |   |   |   | 21,683 |   |   |   | 20,249 |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Quitman                                                                   |   |   | 26,345 |   |   |   | 21,978 |   |   |   | 20,665 |   |   |   | 20,058 |   |   |   | 19,482 |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tunica                                                                    |   |   | 30,072 |   |   |   | 23,325 |   |   |   | 21,186 |   |   |   | 19,656 |   |   |   | 19,567 |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mississippi                                                               |   |   | 30,383 |   |   |   | 28,541 |   |   |   | 27,028 |   |   |   | 25,051 |   |   |   | 24,518 |   |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SOURCE: United States Department of Commerce, Bureau of Economic Analysis |   |

----

| MEDIAN AGE                                                       |   |
|------------------------------------------------------------------|--------|
|                                                             |   |   |   |   |   |   |
|                                                             |   | 2000 |   |   | 1990 |   |
|                                                             |   |   |   |   |   |   |
| DeSoto                                                           |   |   | 33.7 |   |   |   | 31.5 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Panola                                                           |   |   | 33.0 |   |   |   | 30.1 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Marshall                                                         |   |   | 33.9 |   |   |   | 30.5 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Quitman                                                          |   |   | 31.8 |   |   |   | 30.1 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Tunica                                                           |   |   | 30.6 |   |   |   | 25.3 |   |
|                                                             |   |   |   |   |   |   |   |   |
| SOURCE: Center for Population Studies, University of Mississippi |   |

----

|                                       |   |           |    |   |   |   |
|--------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                       |   |           |    |   |   |   |
|                                       |   | December 31,   |    |
|                                       |   | 2010           |    |   | 2009   |   |
|                                       |   | (In thousands) |    |
|                                       |   |           |    |   |   |   |
| Commercial, financial and agricultural     |   | $              | 33,347  |   |   | $      | 30,580 |   |
| Real estate - construction and development |   |           | 56,673  |   |   |   | 69,797 |   |
| Real estate - mortgage                     |   |           | 134,964 |   |   |   | 142,917 |   |
| Installment loans to individuals           |   |           | 20,186  |   |   |   | 20,702 |   |
| Other                                      |   |           | 2,594   |   |   |   | 2,615 |   |
|                                       |   |           | 247,764 |   |   |   | 266,611 |   |
| Less allowance for loan losses             |   |           | (4,477  | )      |   |   | (4,352 | ) |
|                                       |   | $              | 243,287 |   |   | $      | 262,259 |   |
|                                       |   |           |    |   |   |   |   |   |

----

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|   | • | Repeals historical restrictions on, and eliminates many federal and state law barriers to, affiliations among banks, securities firms, insurance companies, and other financial service providers; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Provides a uniform framework for the functional regulation of the activities of banks, savings institutions, and their holding companies; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Broadens the activities that may be conducted by national banks, banking subsidiaries of bank holding companies, and their financial subsidiaries; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Provides an enhanced framework for protecting the privacy of consumer information; |
|--------|---------|------------------------------------------------------------------------------------|

|   | • | Adopts a number of provisions related to the capitalization, membership, corporate governance, and other measures designed to modernize the Federal Home Loan Bank system; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Modifies the laws governing the implementation of the Community Reinvestment Act ("CRA"); and |
|--------|---------|-----------------------------------------------------------------------------------------------|

|   | • | Addresses a variety of other legal and regulatory issues affecting both day-to-day operations and long-term activities of financial institutions. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                     |   | Corporation |   |   | Bank   |   |   |         |   |
|--------------------------|--------|-------------|--------|--------|--------|--------|--------|--------------|--------|
| Risk-Based Capital Ratio |   | Ratio       |   |   | Ratio  |   |   | Requirements |   |
| Total Capital            |   |        | 22.43  | %      |   |   | 18.46  | %            |   |   | 8.00 | % |
| Tier 1 Capital           |   |        | 21.18  | %      |   |   | 17.21  | %            |   |   | 4.00 | % |
| Leverage Capital         |   |        | 12.98  | %      |   |   | 10.30  | %            |   |   | 4.00 | % |

----

----

| ·   | Asset-based deposit insurance assessments.  FDIC deposit insurance premium assessments will be based on bank assets rather than domestic deposits. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Deposit insurance limit increase.  The deposit insurance coverage limit has been permanently increased from $100,000 to $250,000. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Extension of Transaction Account Guarantee Program.  Unlimited deposit insurance coverage is extended for non-interest-bearing transaction accounts and certain other accounts for two years.  This applies to all banks; there is no opt-in or opt-out requirement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Establishment of the Bureau of Consumer Financial Protection (BCFP).  The BCFP will be housed within the Federal Reserve and, in consultation with the Federal banking agencies, will make rules relating to consumer protection.  The BCFP has the authority, should it wish to do so, to rewrite virtually all of the consumer protection regulations governing banks, including those implementing the Truth in Lending Act, the Real Estate Settlement Procedures Act (or RESPA), the Truth in Savings Act, the Electronic Funds Transfer Act, the Equal Credit Opportunity Act, the Home Mortgage Disclosure Act, the S.A.F.E. Mortgage Licensing Act, the Fair Credit Reporting Act (except Sections 615(e) and 628), the Fair Debt Collection Practices Act, and the Gramm-Leach-Bliley Act (sections 502 through 509 relating to privacy), among others. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Risk-retention rule.  Banks originating loans for sale on the secondary market or securitization must retain 5 percent of any loan they sell or securitize, except for mortgages that meet low-risk standards to be developed by regulators. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Limitation on federal preemption.  Limitations have been imposed on the ability of national bank regulators to preempt state law.  Formerly, the national bank and federal thrift regulators possessed preemption powers with regard to transactions, operating subsidiaries and attorney general civil enforcement authority.  These preemption requirements have been limited by the Dodd-Frank Act, which will likely impact state banks by affecting activities previously permitted through parity with national banks. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes to regulation of bank holding companies.  Under Dodd-Frank, bank holding companies must be well-capitalized and well-managed to engage in interstate transactions.  In the past, only the subsidiary banks were required to meet those standards.  The Federal Reserve Board’s “source of strength doctrine” has now been codified, mandating that bank holding companies such as the Company serve as a source of strength for their subsidiary banks, meaning that the bank holding company must be able to provide financial assistance in the event the subsidiary bank experiences financial distress. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Executive compensation limitations.  The Dodd-Frank Act codified executive compensation limitations similar to those previously imposed on TARP recipients. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must have a primary mission of promoting community development, based on criteria set forth in 12 C.F.R. 1805.201(b)(1); |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must provide Financial Products, Development Services, and/or other similar financing as a predominant business activity in arm’s-length transactions, as provided in 12 C.F.R. 1805.201(b)(2); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must serve a Target Market by serving one or more Investment Areas and/or Targeted Populations, substantially in the manner set forth in 12 C.F.R. 1805.201(b)(3); |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must provide Development Services in conjunction with its Financial Products, either directly, through an Affiliate, or through a contract with a third-party provider, as provided in 12 C.F.R. 1805.201(b)(4); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must maintain accountability to residents of the applicable Investment Area(s) and/or Targeted Population(s) through representation on its governing Board of Directors or otherwise, as provided in 12 C.F.R. 1805.201(b)(5); and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must remain a non-governmental entity which is not an agency or instrumentality of the United States of America, or any State or political subdivision thereof, as described in 12 C.F.R. 1805.201(b)(6) and within the meaning of any supplemental regulations or interpretations of 12 C.F.R. 1805.201(b)(6) or such supplemental regulations published by the Fund. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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----

----

| ·   | In 2009, the Company received $17,388,000 in funding under the Capital Purchase Program, which is part of the Troubled Asset Relief Program or “TARP,” in exchange for preferred stock and preferred stock warrants.  On September 29, 2010, the Company closed a transaction whereby the Treasury exchanged (the “Exchange”) its 17,910 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series UST and Series UST/W for 17,910 shares of a new series of preferred stock designated Fixed Rate Cumulative Perpetual Preferred Stock, Series CD (the “CDCI Preferred Shares”).   As a result of the Exchange, the Company is participating in the Community Development Capital Initiative which is also part of TARP. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Participation constrains the Company’s ability to raise dividends and repurchase equity securities and also places certain constraints on executive compensation arrangements. The increased funding provides assurance that the Company can maintain its minimum regulatory capital ratios in the face of future large real estate-related losses. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The rules that govern TARP include restrictions on certain compensation to executive officers and a number of others in the Company. Among other things, these rules include a prohibition on golden parachute payments, a prohibition on providing tax gross-ups, a bonus claw-back provision, and a prohibition on paying any bonus payment to the Company’s most highly compensated employee. It is possible that compensation restrictions imposed by TARP could impede our ability to attract and retain qualified executive officers. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our participation in the Capital Purchase Program limited our annual per share dividend payments to no more than the amount paid in the immediately prior fiscal year.  Beginning on September 29, 2008, our ability to repurchase our common stock would also be restricted. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Since TARP was part of legislation that has the reputation of being passed as a bailout of the financial industry, participation in the program could also create some reputational risk. This reputation of the program could impede the Company’s ability to attract business in competition with other financial institutions that did not participate. This reputational risk could also impede the Company’s ability to attract and retain qualified executive officers. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As a result of the Exchange, the Company is no longer participating in the TARP Capital Purchase Program being administered by Treasury and is now participating in Treasury’s TARP Community Development Capital Initiative (the “CDCI”).  In comparison with the rates required by the TARP CPP, the CDCI Preferred Shares entitle the holder to an annual dividend of 2% of the liquidation value of the shares, payable quarterly in arrears, for a period of eight years or until repayment of the principal, whichever expires first.  If the principal remains outstanding at the end of eight years, the annual dividend rate will rise to 9%.  In addition, if the Company fails to maintain its compliance with the eligibility requirements for certification as a Community Development Financial Institution, the annual rate will be 5% when noncompliance exceeds 180 days and 9% for noncompliance exceeding 270 days. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must have a primary mission of promoting community development, based on criteria set forth in 12 C.F.R. 1805.201(b)(1); |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must provide Financial Products, Development Services, and/or other similar financing as a predominant business activity in arm’s-length transactions, as provided in 12 C.F.R. 1805.201(b)(2); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must serve a Target Market by serving one or more Investment Areas and/or Targeted Populations, substantially in the manner set forth in 12 C.F.R. 1805.201(b)(3); |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must provide Development Services in conjunction with its Financial Products, either directly, through an Affiliate, or through a contract with a third-party provider, as provided in 12 C.F.R. 1805.201(b)(4); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must maintain accountability to residents of the applicable Investment Area(s) and/or Targeted Population(s) through representation on its governing Board of Directors or otherwise, as provided in 12 C.F.R. 1805.201(b)(5); and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must remain a non-governmental entity which is not an agency or instrumentality of the United States of America, or any State or political subdivision thereof, as described in 12 C.F.R. 1805.201(b)(6) and within the meaning of any supplemental regulations or interpretations of 12 C.F.R. 1805.201(b)(6) or such supplemental regulations published by the Fund. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • |   | Inability of our borrowers to make timely repayments of their loans, or decreases in value of real estate collateral securing the payment of such loans resulting in significant credit losses.                                                                                                                                                                                                                |
|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| • |   | Increased regulation of our industry, including heightened legal standards, and regulatory requirements or future legislation. Compliance with such regulation will likely increase our costs and may limit our ability to pursue business opportunities. In addition, compensation restrictions associated with any future legislation may affect our ability to attract and retain key management personnel. |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| • |   | Possible changes to bankruptcy laws could result in the loss of all or part of our security interest in mortgage loans.                                                                                                                                                                                                                                                                                        |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| • |   | Further disruptions in the capital markets or other events including actions by rating agencies and deteriorating investor expectations may result in an inability to borrow at favorable terms or at all from other financial institutions.                                                                                                                                                                   |

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| Name of Office               |   | Location/Telephone Number        |   | Banking Services Offered        |
|------------------------------|--------|----------------------------------|--------|---------------------------------|
|                         |   |                             |   |                            |
| Main Office                  |   | 295 Highway 6 West               |   | Loans, Deposits, Cash,          |
|                         |   | Batesville, Mississippi 38606    |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-563-9311                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Express Branch               |   | 130 Highway 51 North             |   | Drive-thru, Cash                |
|                         |   | Batesville, Mississippi 38606    |   |                            |
|                         |   | 662-563-9311                     |   |                            |
|                         |   |                             |   |                            |
| Marks Branch                 |   | 1651 Charlie Pride Highway South |   | Loans, Deposits, Cash,          |
|                         |   | Marks, Mississippi 38646         |   | Safe Deposit Boxes,             |
|                         |   | 662-326-8053                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Power Drive Branch           |   | 230 Power Drive                  |   | Loans, Deposits, Cash,          |
|                         |   | Batesville, Mississippi 38606    |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-563-9311                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Sardis Branch                |   | 201 South Main                   |   | Loans, Deposits, Cash,          |
|                         |   | Sardis, Mississippi 38666        |   | Safe Deposit Boxes              |
|                         |   | 662-487-1661                     |   |                            |
|                         |   |                             |   |                            |
| Olive Branch Branch          |   | 6659 Highway 305                 |   | Loans, Deposits, Cash,          |
|                         |   | Olive Branch, Mississippi 38654  |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-895-1994                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Como Branch                  |   | 227 Main Street                  |   | Loans, Deposits, Cash,          |
|                         |   | Como, Mississippi 38619          |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-526-5191                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Crenshaw Branch              |   | 729 Broad Street                 |   | Loans, Deposits, Cash,          |
|                         |   | Crenshaw, Mississippi 38621      |   | Safe Deposit Boxes              |
|                         |   | 662-382-5215                     |   |                            |
|                         |   |                             |   |                            |
| Tunica Branch                |   | 1262 East Edwards Street         |   | Loans, Deposits, Cash,          |
|                         |   | Tunica, Mississippi 38676        |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-363-2311                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Robinsonville Branch         |   | 11490 Old Highway 61 North       |   | Loans, Deposits, Cash,          |
|                         |   | Robinsonville, Mississippi 38664 |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-363-5015                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Hernando Branch              |   | 985 East Commerce Street         |   | Loans, Deposits, Cash,          |
|                         |   | Hernando, Mississippi 38632      |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-449-4115                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Pope Branch                  |   | 7024 Highway 51 North            |   | Deposits, Cash, ATM,            |
|                         |   | Pope, Mississippi 38658          |   | Drive-thru                      |
|                         |   | 662-578-5650                     |   |                            |
|                         |   |                             |   |                            |
| Southaven Branch             |   | 3035 Church Road East            |   | Loans, Deposits, Cash,          |
|                         |   | Southaven, Mississippi 38672     |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-893-3243                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Sardis Express Branch        |   | 610 East Lee Street              |   | Deposits, Cash, ATM,            |
|                         |   | Sardis, Mississippi 38666        |   | Drive-thru                      |
|                         |   | 662-487-1895                     |   |                            |
|                         |   |                             |   |                            |
| Goodman Road Branch          |   | 5028 Goodman Road                |   | Loans, Deposits, Cash,          |
|                         |   | Olive Branch, Mississippi 38654  |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-890-1043                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Barton Branch                |   | 4417 Highway 302                 |   | Loans, Deposits, Cash,          |
|                         |   | Olive Branch, Mississippi 38654  |   | Safe Deposit Boxes, ATM,        |
|                         |   | 662-890-4670                     |   | Drive-thru                      |
|                         |   |                             |   |                            |
| Trust and Financial Services |   | 275 Highway 6 West               |   | Investment Planning &       |
| Branch                       |   | Batesville, Mississippi 38606    |   | Management, Personal Trusts,    |
|                         |   | 662-563-9311                     |   | Corporate Trusts, Pension & |
|                         |   |                             |   | Profit-Sharing Plans, IRA's,    |
|                         |   |                             |   | Paying Agent Accounts           |

----

| ITEM 5. | MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SHAREHOLDER MATTERS |
|---------|--------------------------------------------------------------------------|

----

|    Security Capital Corporation                                                                        |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |
|-----------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
| Table 1 - Five Year Financial Summary                                                                                 |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
|                                                                                                                  | 12/31/2010                                                                                                                                                                          | 12/31/2009                                                                                                                                                                  | 12/31/2008                                                                                              | 12/31/2007                                                                                              | 12/31/2006 |   |   |   |   |
|                                                                                                                  | (In thousands except per share data and other financial data)                                                                                                                       |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |
| Income Statement Data:                                                                                                |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Interest Income                                                                                                       | $  19,785                                                                                                                                                                 | $  21,067                                                                                                                                                         | $  27,071                                                                                     | $  34,133                                                                                     | $  30,586 |   |   |   |   |
| Interest Expense                                                                                                      | 4,276                                                                                                                                                                               | 5,373                                                                                                                                                                       | 8,993                                                                                                   | 13,699                                                                                                  | 11,523 |   |   |   |   |
| Net Interest Income                                                                                                   | 15,509                                                                                                                                                                              | 15,694                                                                                                                                                                      | 18,078                                                                                                  | 20,434                                                                                                  | 19,063 |   |   |   |   |
| Provision for Loan Losses                                                                                             | 2,325                                                                                                                                                                               | 3,911                                                                                                                                                                       | 10,456                                                                                                  | 1,155                                                                                                   | 965 |   |   |   |   |
| Net Interest Income After Provision                                                                                   | 13,184                                                                                                                                                                              | 11,783                                                                                                                                                                      | 7,622                                                                                                   | 19,279                                                                                                  | 18,098 |   |   |   |   |
| Noninterest Income                                                                                                    | 6,355                                                                                                                                                                               | 6,624                                                                                                                                                                       | 7,748                                                                                                   | 6,849                                                                                                   | 6,926 |   |   |   |   |
| Noninterest Expenses                                                                                                  | 18,493                                                                                                                                                                              | 18,137                                                                                                                                                                      | 16,029                                                                                                  | 15,538                                                                                                  | 14,435 |   |   |   |   |
| Income (loss) Before Income Taxes                                                                                     | 1, 046                                                                                                                                                                              |  270                                                                                                                                                                   |  (839)                                                                                             | 10,590                                                                                                  | 10,589 |   |   |   |   |
| Income Tax Expense (Benefit)                                                                                          |    (256)                                                                                                                                                             |    (528)                                                                                                                                                     |    (1,022)                                                                               | 3,155                                                                                                   | 3,349 |   |   |   |   |
| NET INCOME                                                                                                            | 1,302                                                                                                                                                                               | 798                                                                                                                                                                         | 183                                                                                                     | 7,435                                                                                                   | 7,240 |   |   |   |   |
| Preferred Dividends                                                                                                   |                              1,014 |                             585 |                  - |                  - |                  - |   |   |   |   |
| Net income applicable to                                                                                              |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
|     common shareholders                                                                           | 288                                                                                                                                                                                 | 213                                                                                                                                                                         | 183                                                                                                     | 7,435                                                                                                   | 7,240 |   |   |   |   |
|   Per Share Data:                                                                                           |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Basic net Income – per common share*                                                                            | .10                                                                                                                                                                                 | .07                                                                                                                                                                         | .06                                                                                                     | 2.58                                                                                                    | 2.51 |   |   |   |   |
| Cash Dividends*                                                                                                       | .50                                                                                                                                                                                 | .50                                                                                                                                                                         | .50                                                                                                     | 1.00                                                                                                    | 0.95 |   |   |   |   |
| Book Value*                                                                                                           | 24.94                                                                                                                                                                               | 25.24                                                                                                                                                                       | 19.42                                                                                                   | 19.76                                                                                                   | 18.05 |   |   |   |   |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Other Ratios (%):                                                                                                     |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Return on Average Assets                                                                                              | .06                                                                                                                                                                                 | .04                                                                                                                                                                         | .04                                                                                                     | 1.54                                                                                                    | 1.58 |   |   |   |   |
| Return on Average Equity                                                                                              | .39                                                                                                                                                                                 | .32                                                                                                                                                                         | .31                                                                                                     | 13.44                                                                                                   | 14.36 |   |   |   |   |
| Loans to Deposits                                                                                                     | 60.62                                                                                                                                                                               | 69.52                                                                                                                                                                       | 86.82                                                                                                   | 88.28                                                                                                   | 89.08 |   |   |   |   |
| Loans to Total Assets                                                                                                 | 48.35                                                                                                                                                                               | 54.26                                                                                                                                                                       | 67.11                                                                                                   | 72.02                                                                                                   | 71.27 |   |   |   |   |
| Equity Capital to Total Assets                                                                                        | 14.03                                                                                                                                                                               | 14.81                                                                                                                                                                       | 12.10                                                                                                   | 11.95                                                                                                   | 11.34 |   |   |   |   |
| Average Equity to Average Assets                                                                                      | 14.39                                                                                                                                                                               | 14.08                                                                                                                                                                       | 12.15                                                                                                   | 11.43                                                                                                   | 10.99 |   |   |   |   |
| Dividend Payout Ratio                                                                                                 | 500.00                                                                                                                                                                              | 676.79                                                                                                                                                                      | 787.58                                                                                                  | 38.76                                                                                                   | 37.90 |   |   |   |   |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Other Financial Data:                                                                                                 |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Cash Dividends Declared                                                                                               | $1,441,580                                                                                                                                                                          | $1,441,555                                                                                                                                                                  | $1,441,280                                                                                              | $2,881,809                                                                                              | $2,743,770 |   |   |   |   |
| Weighted Average                                                                                                      |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Outstanding Common Shares                                                                                             | 2,883,167                                                                                                                                                                           | 2,882,959                                                                                                                                                                   | 2,882,332                                                                                               | 2,881,934                                                                                               | 2,880,487 |   |   |   |   |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| *The per share information is based upon the retroactive effect of the stock dividends for the period, if applicable. |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |
| The per share data being reflected was derived using the weighted average number of outstanding shares at             |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |
| December 31, 2010 as the denominator.  (The weighted average number of outstanding shares at December       |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |
| 31, 2010 was 2,883,209.)  For example, the cash dividends per share was determined by dividing the amount   |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |
| of dividends by 2,883,209.                                                                                            |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |
|                                                                                                                  | 12/31/2010                                                                                                                                                                          | 12/31/2009                                                                                                                                                                  | 12/31/2008                                                                                              | 12/31/2007                                                                                              | 12/31/2006 |   |   |   |   |
|                                                                                                                  | (In thousands except other data)                                                                                                                                                    |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |
| Balance Sheet Data:                                                                                                   |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Total Assets                                                                                                          | $ 512,482                                                                                                                                                                           | $ 491,372                                                                                                                                                                   | $ 462,485                                                                                               | $ 476,530                                                                                               |  $ 458,329 |   |   |   |   |
| Earning Assets                                                                                                        | 419,954                                                                                                                                                                             | 403,751                                                                                                                                                                     | 395,077                                                                                                 | 425,879                                                                                                 | 398,824 |   |   |   |   |
| Investment Securities AFS                                                                                             | 124,447                                                                                                                                                                             | 109,466                                                                                                                                                                     | 69,890                                                                                                  | 66,160                                                                                                  | 61,028 |   |   |   |   |
| Investment Securities HTM                                                                                             | 33,095                                                                                                                                                                              | 14,759                                                                                                                                                                      | 5,375                                                                                                   | 7,235                                                                                                   | 7,850 |   |   |   |   |
| Other Securities                                                                                                      | 1,933                                                                                                                                                                               | 2,223                                                                                                                                                                       | 2,218                                                                                                   | 2,024                                                                                                   | 2,250 |   |   |   |   |
| Loans - Net                                                                                                           | 243,287                                                                                                                                                                             | 262,259                                                                                                                                                                     | 306,678                                                                                                 | 338,460                                                                                                 | 322,324 |   |   |   |   |
| Allowance for Loan Losses                                                                                             | 4,477                                                                                                                                                                               | 4,352                                                                                                                                                                       | 3,675                                                                                                   | 4,729                                                                                                   | 4,334 |   |   |   |   |
| Total Deposits                                                                                                        | 408,743                                                                                                                                                                             | 383,500                                                                                                                                                                     | 357,483                                                                                                 | 388,733                                                                                                 | 366,699 |   |   |   |   |
| Savings Deposits                                                                                                      | 28,064                                                                                                                                                                              | 26,830                                                                                                                                                                      | 27,731                                                                                                  | 26,897                                                                                                  | 30,553 |   |   |   |   |
| Time Deposits                                                                                                         | 158,987                                                                                                                                                                             | 148,746                                                                                                                                                                     | 145,899                                                                                                 | 175,805                                                                                                 | 156,692 |   |   |   |   |
| Long-Term Borrowings                                                                                                  | 25,127                                                                                                                                                                              | 26,910                                                                                                                                                                      | 28,657                                                                                                  | 22,082                                                                                                  | 11,937 |   |   |   |   |
| Shareholders' Equity                                                                                                  | 71,913                                                                                                                                                                              | 72,780                                                                                                                                                                      | 55,979                                                                                                  | 56,939                                                                                                  | 51,984 |   |   |   |   |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Average Balances:                                                                                                     |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Total Assets                                                                                                          | 518,551                                                                                                                                                                             | 477,345                                                                                                                                                                     | 482,066                                                                                                 | 472,756                                                                                                 | 450,822 |   |   |   |   |
| Earning Assets                                                                                                        | 438,687                                                                                                                                                                             | 400,451                                                                                                                                                                     | 422,877                                                                                                 | 420,609                                                                                                 | 397,929 |   |   |   |   |
| Securities                                                                                                            | 149,068                                                                                                                                                                             | 87,609                                                                                                                                                                      | 78,734                                                                                                  | 72,399                                                                                                  | 78,309 |   |   |   |   |
| Total Loans                                                                                                           | 258,541                                                                                                                                                                             | 286,433                                                                                                                                                                     | 334,576                                                                                                 | 340,689                                                                                                 | 315,468 |   |   |   |   |
| Allowance for Loan Losses                                                                                             | 3,985                                                                                                                                                                               | 4,141                                                                                                                                                                       | 4,963                                                                                                   | 4,612                                                                                                   | 4,281 |   |   |   |   |
| Savings Deposits                                                                                                      | 27,771                                                                                                                                                                              | 26,512                                                                                                                                                                      | 28,442                                                                                                  | 29,932                                                                                                  | 31,363 |   |   |   |   |
| Time Deposits                                                                                                         | 156,388                                                                                                                                                                             | 144,736                                                                                                                                                                     | 162,006                                                                                                 | 168,032                                                                                                 | 144,549 |   |   |   |   |
| Long-Term Borrowings                                                                                                  | 27,219                                                                                                                                                                              | 29,989                                                                                                                                                                      | 29,742                                                                                                  | 16,291                                                                                                  | 12,450 |   |   |   |   |
| Shareholders’ Equity                                                                                            | 74,608                                                                                                                                                                              | 67,539                                                                                                                                                                      | 56,228                                                                                                  | 52,990                                                                                                  | 50,414 |   |   |   |   |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Other Data:                                                                                                           |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |
| Number of Employees                                                                                                   | 177                                                                                                                                                                                 | 186                                                                                                                                                                         | 189                                                                                                     | 190                                                                                                     | 190 |   |   |   |   |
|                                                                                                                  |                                                                                                                                                                                |                                                                                                                                                                        |                                                                                                    |                                                                                                    |   |   |   |   |   |

----

| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

| Security Capital Corporation                                    |   |
|-----------------------------------------------------------------|--------|
| Table 2 - Average Balances; Interest Earned and Interest Yields |   |
| (in thousands)                                                  |   |
|                                                            |   | Years ended December 31, |   |
|                                                            |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                            |   | Average |   |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                                            |   | Balance |   |   | Interest |   |   | Yields |   |   | Balance |   |   | Interest |   |   | Yields |   |   | Balance |   |   | Interest |   |   | Yields |   |
| Assets:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Earning Assets:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                                                      |   |   | 145,905 |   |   |   | 4,512 |   |   |   | 3.09 |   |   |   | 85,672 |   |   |   | 3,515 |   |   |   | 4.10 |   |   |   | 78,188 |   |   |   | 3,712 |   |   |   | 4.75 |   |
| BV to MV                                                        |   |   | 3,163 |   |   |   |   |   |   |   |   |   |   |   | 1,937 |   |   |   |   |   |   |   |   |   |   |   | 546 |   |   |   |   |   |   |   |   |   |
| Total Securities                                                |   |   | 149,068 |   |   |   | 4,512 |   |   |   | 3.03 |   |   |   | 87,609 |   |   |   | 3,515 |   |   |   | 4.01 |   |   |   | 78,734 |   |   |   | 3,712 |   |   |   | 4.71 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commerical/Agricultural                                         |   |   | 196,036 |   |   |   | 10,789 |   |   |   | 5.50 |   |   |   | 218,744 |   |   |   | 12,446 |   |   |   | 5.69 |   |   |   | 262,136 |   |   |   | 17,039 |   |   |   | 6.50 |   |
| Consumer/Installment                                            |   |   | 57,359 |   |   |   | 4,158 |   |   |   | 7.25 |   |   |   | 62,594 |   |   |   | 4,743 |   |   |   | 7.58 |   |   |   | 66,761 |   |   |   | 5,702 |   |   |   | 8.54 |   |
| Mortgage                                                        |   |   | 160 |   |   |   | 8 |   |   |   | 5.00 |   |   |   | 150 |   |   |   | 12 |   |   |   | 8.00 |   |   |   | 232 |   |   |   | 19 |   |   |   | 8.19 |   |
| Other Personal Loans                                            |   |   | 4,986 |   |   |   | 221 |   |   |   | 4.43 |   |   |   | 4,945 |   |   |   | 217 |   |   |   | 4.39 |   |   |   | 5,447 |   |   |   | 303 |   |   |   | 5.56 |   |
| Total Loans                                                     |   |   | 258,541 |   |   |   | 15,176 |   |   |   | 5.87 |   |   |   | 286,433 |   |   |   | 17,418 |   |   |   | 6.08 |   |   |   | 334,576 |   |   |   | 23,063 |   |   |   | 6.89 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Investments                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CDs with Other Banks                                            |   |   | 671 |   |   |   | 13 |   |   |   | 1.94 |   |   |   | 257 |   |   |   | 7 |   |   |   | 2.72 |   |   |   | 198 |   |   |   | 10 |   |   |   | 5.05 |   |
| Federal Funds Sold                                              |   |   | 27,681 |   |   |   | 62 |   |   |   | 0.22 |   |   |   | 20,782 |   |   |   | 47 |   |   |   | 0.23 |   |   |   | 3,503 |   |   |   | 89 |   |   |   | 2.54 |   |
| FHLB Account/Other                                              |   |   | 2,726 |   |   |   | 22 |   |   |   | 0.81 |   |   |   | 5,370 |   |   |   | 80 |   |   |   | 1.49 |   |   |   | 5,866 |   |   |   | 197 |   |   |   | 3.36 |   |
| Total Other                                                     |   |   | 31,078 |   |   |   | 97 |   |   |   | 0.31 |   |   |   | 26,409 |   |   |   | 134 |   |   |   | 0.51 |   |   |   | 9,567 |   |   |   | 296 |   |   |   | 3.09 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Earning Assets                                            |   |   | 438,687 |   |   |   | 19,785 |   |   |   | 4.51 |   |   |   | 400,451 |   |   |   | 21,067 |   |   |   | 5.26 |   |   |   | 422,877 |   |   |   | 27,071 |   |   |   | 6.40 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest Earning Assets:                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses                                       |   |   | -3,985 |   |   |   |   |   |   |   |   |   |   |   | -4,141 |   |   |   |   |   |   |   |   |   |   |   | -4,963 |   |   |   |   |   |   |   |   |   |
| Fixed Assets                                                    |   |   | 32,708 |   |   |   |   |   |   |   |   |   |   |   | 27,361 |   |   |   |   |   |   |   |   |   |   |   | 23,145 |   |   |   |   |   |   |   |   |   |
| Other Assets                                                    |   |   | 32,063 |   |   |   |   |   |   |   |   |   |   |   | 36,301 |   |   |   |   |   |   |   |   |   |   |   | 24,245 |   |   |   |   |   |   |   |   |   |
| Cash and Due Froms                                              |   |   | 19,427 |   |   |   |   |   |   |   |   |   |   |   | 17,373 |   |   |   |   |   |   |   |   |   |   |   | 16,762 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Noninterest Earning Assets                                |   |   | 80,213 |   |   |   |   |   |   |   |   |   |   |   | 76,894 |   |   |   |   |   |   |   |   |   |   |   | 59,189 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                                    |   |   | 518,900 |   |   |   |   |   |   |   |   |   |   |   | 477,345 |   |   |   |   |   |   |   |   |   |   |   | 482,066 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities & Shareholders' Equity                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing DDA                                            |   |   | 155,585 |   |   |   | 883 |   |   |   | 0.57 |   |   |   | 140,946 |   |   |   | 981 |   |   |   | 0.70 |   |   |   | 135,517 |   |   |   | 1,767 |   |   |   | 1.30 |   |
| Savings Deposits                                                |   |   | 27,771 |   |   |   | 57 |   |   |   | 0.21 |   |   |   | 26,512 |   |   |   | 92 |   |   |   | 0.35 |   |   |   | 28,442 |   |   |   | 201 |   |   |   | 0.71 |   |
| Time Deposits                                                   |   |   | 156,388 |   |   |   | 2,242 |   |   |   | 1.43 |   |   |   | 144,736 |   |   |   | 3,043 |   |   |   | 2.10 |   |   |   | 162,006 |   |   |   | 5,651 |   |   |   | 3.49 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Bearing Deposits                                 |   |   | 339,744 |   |   |   | 3,182 |   |   |   | 0.94 |   |   |   | 312,194 |   |   |   | 4,116 |   |   |   | 1.32 |   |   |   | 325,965 |   |   |   | 7,619 |   |   |   | 2.34 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowed Funds                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-Term Borrowings                                           |   |   | 577 |   |   |   | 0 |   |   |   | 0.00 |   |   |   | 723 |   |   |   | 2 |   |   |   | 0.28 |   |   |   | 2,314 |   |   |   | 45 |   |   |   | 1.94 |   |
| FHLB Advances- Short/Long-Term                                  |   |   | 26,642 |   |   |   | 1,094 |   |   |   | 4.11 |   |   |   | 29,989 |   |   |   | 1,255 |   |   |   | 4.18 |   |   |   | 31,614 |   |   |   | 1,329 |   |   |   | 4.20 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Borrowed Funds                                            |   |   | 27,219 |   |   |   | 1,094 |   |   |   | 4.02 |   |   |   | 30,712 |   |   |   | 1,257 |   |   |   | 4.09 |   |   |   | 33,928 |   |   |   | 1,374 |   |   |   | 4.05 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Bearing Liabilities                              |   |   | 366,963 |   |   |   | 4,276 |   |   |   | 1.17 |   |   |   | 342,906 |   |   |   | 5,373 |   |   |   | 1.57 |   |   |   | 359,893 |   |   |   | 8,993 |   |   |   | 2.50 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-Interest-Bearing Liabilities                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-Interest-Bearing Deposits                                   |   |   | 69,422 |   |   |   |   |   |   |   |   |   |   |   | 59,201 |   |   |   |   |   |   |   |   |   |   |   | 59,544 |   |   |   |   |   |   |   |   |   |
| Other Liabilities                                               |   |   | 7,907 |   |   |   |   |   |   |   |   |   |   |   | 7,699 |   |   |   |   |   |   |   |   |   |   |   | 6,401 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders' Equity                                            |   |   | 74,608 |   |   |   |   |   |   |   |   |   |   |   | 67,539 |   |   |   |   |   |   |   |   |   |   |   | 56,228 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities & Shareholders' Equity                    |   |   | 518,900 |   |   |   |   |   |   |   |   |   |   |   | 477,345 |   |   |   |   |   |   |   |   |   |   |   | 482,066 |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income &                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Rate Spread                                            |   |   |   |   |   |   | 15,509 |   |   |   | 3.34 |   |   |   |   |   |   |   | 15,694 |   |   |   | 3.69 |   |   |   |   |   |   |   | 18,078 |   |   |   | 3.90 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Margin                                             |   |   |   |   |   |   |   |   |   |   | 3.54 |   |   |   |   |   |   |   |   |   |   |   | 3.92 |   |   |   |   |   |   |   |   |   |   |   | 4.28 |   |

----

| Table 3 - Net Interest Earning Assets |   |
|---------------------------------------|--------|
| (in thousands)                        |   |
|                                  |   |   |   |   |   |   |   |   |   |
|                                  |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                  |   |   |   |   |   |   |   |   |   |
| Average Interest                      |   |   |   |   |   |   |   |   |   |
|    Earning Assets      |   | $ | 438,687 |   |   | $ | 400,451 |   |   | $ | 422,877 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Interest                      |   |   |   |   |   |   |   |   |   |   |   |   |
|    Bearing Liabilities |   |   | 366,963 |   |   |   | 342,906 |   |   |   | 359,893 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                                   |   | $ | 71,724 |   |   | $ | 57,545 |   |   | $ | 62,984 |   |

| Table 3A - Volume/Rate Analysis |   |
|-------------------------------------------|--------|
| (dollars in thousands)                    |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | 2010 Change from 2009 |   |   | 2009 Change from 2008 |   |
|                                      |   | Volume |   |   | Rate |   |   | Total |   |   | Volume |   |   | Rate |   |   | Total |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST INCOME (excluding fees):         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                     |   |   | -1,648 |   |   |   | -487 |   |   |   | -2,135 |   |   |   | -2,935 |   |   |   | -2,710 |   |   |   | -5,645 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Securities                     |   |   | 1,862 |   |   |   | -867 |   |   |   | 995 |   |   |   | 347 |   |   |   | -544 |   |   |   | -197 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                                     |   |   | 11 |   |   |   | -71 |   |   |   | -60 |   |   |   | 84 |   |   |   | -246 |   |   |   | -162 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest Income                     |   |   | 225 |   |   |   | -1,425 |   |   |   | -1,200 |   |   |   | -2,504 |   |   |   | -3,500 |   |   |   | -6,004 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST EXPENSE:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand Deposit Accounts                   |   |   | 51 |   |   |   | -240 |   |   |   | -189 |   |   |   | 34 |   |   |   | -820 |   |   |   | -786 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings Deposits                          |   |   | 3 |   |   |   | -37 |   |   |   | -34 |   |   |   | -7 |   |   |   | -102 |   |   |   | -109 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time Deposits                             |   |   | 167 |   |   |   | -970 |   |   |   | -803 |   |   |   | -362 |   |   |   | -2,246 |   |   |   | -2,608 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowed Funds                            |   |   | -129 |   |   |   | -123 |   |   |   | -252 |   |   |   | -131 |   |   |   | 14 |   |   |   | -117 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest Expense                    |   |   | 92 |   |   |   | -1,370 |   |   |   | -1,278 |   |   |   | -466 |   |   |   | -3,154 |   |   |   | -3,620 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INTEREST INCOME                       |   |   | 133 |   |   |   | -55 |   |   |   | 78 |   |   |   | -2,038 |   |   |   | -346 |   |   |   | -2,384 |   |

----

| Table 4 - Non-Interest Income and Expense |   |
|-------------------------------------------|--------|
| (in thousands)                            |   |
|                                      |   |   |   |   |   |   |   |   |   |
|                                      |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Non-Interest Income:                      |   |   |   |   |   |   |   |   |   |
| Trust Department Income                   |   | $ | 837 |   |   | $ | 814 |   |   | $ | 752 |   |
| Service Charges: Deposits                 |   |   | 4,354 |   |   |   | 4,826 |   |   |   | 5,172 |   |
| Other Operating Income                    |   |   | 1,164 |   |   |   | 984 |   |   |   | 1,824 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Non-Interest Income                 |   | $ | 6,355 |   |   | $ | 6,624 |   |   | $ | 7,748 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-Interest Expense:                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries & Employee Benefits          |   | $ | 9,559 |   |   | $ | 10,456 |   |   | $ | 10,227 |   |
| Occupancy Expense                         |   |   | 2,405 |   |   |   | 2,447 |   |   |   | 2,475 |   |
| Other Operating Expense                   |   |   | 6,529 |   |   |   | 5,234 |   |   |   | 3,507 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Non-Interest Expense                |   | $ | 18,493 |   |   | $ | 18,137 |   |   | $ | 16,209 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| Table 5 - Loans by Type                      |   |
|----------------------------------------------|--------|
| (in thousands)                               |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Commercial, Financial & Agricultural     |   | $ | 33,347 |   |   | $ | 30,580 |   |   | $ | 44,752 |   |   | $ | 39,135 |   |   | $ | 38,349 |   |
| Real Estate - Construction & Development |   |   | 56,673 |   |   |   | 69,797 |   |   |   | 96,049 |   |   |   | 124,714 |   |   |   | 105,545 |   |
| Real Estate - Mortgage                       |   |   | 134,964 |   |   |   | 142,917 |   |   |   | 144,647 |   |   |   | 151,998 |   |   |   | 153,525 |   |
| Installment Loans to Individuals             |   |   | 20,186 |   |   |   | 20,702 |   |   |   | 22,999 |   |   |   | 24,624 |   |   |   | 26,858 |   |
| Other                                        |   |   | 2,594 |   |   |   | 2,615 |   |   |   | 1,906 |   |   |   | 2,718 |   |   |   | 2,381 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Loans                                  |   | $ | 247,764 |   |   | $ | 266,611 |   |   | $ | 310,353 |   |   | $ | 343,189 |   |   | $ | 326,658 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Table 6 - Loan Liquidity                    |   |
|---------------------------------------------|--------|
| (in thousands)                              |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | Within |   |   | 1 thr 5 |   |   | Over |   |   |   |   |
| Loans That Will Reprice or Will Mature:     |   | 1 Year |   |   | Years |   |   | 5 Years |   |   | Total |   |
| Allocation by Maturity Date:                |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, financial and agriculture loans |   | $ | 17,760 |   |   | $ | 15,450 |   |   | $ | 137 |   |   | $ | 33,347 |   |
| Construction and development                |   |   | 44,460 |   |   |   | 12,201 |   |   |   | 12 |   |   |   | 56,673 |   |
| Total                                       |   | $ | 62,220 |   |   | $ | 27,651 |   |   | $ | 149 |   |   | $ | 90,020 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repricing frequency of loan types above:    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed Rate                                  |   | $ | 16,162 |   |   | $ | 14,777 |   |   | $ | 35 |   |   | $ | 30,974 |   |
| Variable Rate                               |   |   | 46,058 |   |   |   | 12,874 |   |   |   | 114 |   |   |   | 59,046 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                       |   | $ | 62,220 |   |   | $ | 27,651 |   |   | $ | 149 |   |   | $ | 90,020 |   |
| Percent of Total                            |   |   | 69.12 | % |   |   | 30.72 | % |   |   | 0.16 | % |   |   | 100.00 | % |

----

| Security Capital Corporation                       |   |
|----------------------------------------------------|--------|
| Table 7 - Allowance for Loan Losses           |   |
| (in thousands)                                     |   |
|                                               |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Balance at                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Beginning of Year                |   | $ | 4,352 |   |   | $ | 3,675 |   |   | $ | 4,729 |   |   | $ | 4,334 |   |   | $ | 3,899 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:  Loans Charged-Off                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, Financial & Agricultural           |   |   | 611 |   |   |   | 303 |   |   |   | 107 |   |   |   | 92 |   |   |   | 105 |   |
| Real Estate - Construction & Development       |   |   | 1,002 |   |   |   | 1,452 |   |   |   | 8,959 |   |   |   | 202 |   |   |   | 35 |   |
| Real Estate - Mortgage                             |   |   | 379 |   |   |   | 987 |   |   |   | 683 |   |   |   | 76 |   |   |   | 44 |   |
| Installment Loans to Individuals                   |   |   | 856 |   |   |   | 1,070 |   |   |   | 2,255 |   |   |   | 2,025 |   |   |   | 1,017 |   |
| Other                                              |   |   | 141 |   |   |   | 517 |   |   |   | 1,871 |   |   |   | 5 |   |   |   | 13 |   |
| Total Charge-Offs                                  |   |   | 2,989 |   |   |   | 4,329 |   |   |   | 13,875 |   |   |   | 2,400 |   |   |   | 1,214 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Add:  Charge-Off Recovered               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, Financial & Agricultural           |   |   | 74 |   |   |   | 69 |   |   |   | 17 |   |   |   | 10 |   |   |   | 8 |   |
| Real Estate - Construction & Development       |   |   | 9 |   |   |   | 44 |   |   |   | 510 |   |   |   | 11 |   |   |   | 4 |   |
| Real Estate - Mortgage                             |   |   | 75 |   |   |   | 94 |   |   |   | 59 |   |   |   | 27 |   |   |   | 21 |   |
| Installment Loans to Individuals                   |   |   | 593 |   |   |   | 837 |   |   |   | 1,778 |   |   |   | 1,591 |   |   |   | 648 |   |
| Other                                              |   |   | 38 |   |   |   | 51 |   |   |   | 1 |   |   |   | 1 |   |   |   | 3 |   |
| Total Recoveries                                   |   |   | 789 |   |   |   | 1,095 |   |   |   | 2,365 |   |   |   | 1,640 |   |   |   | 684 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:  Net Charge-Offs                   |   |   | 2,200 |   |   |   | 3,234 |   |   |   | 11,510 |   |   |   | 760 |   |   |   | 530 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Add:  Current Year Provision             |   |   | 2,325 |   |   |   | 3,911 |   |   |   | 10,456 |   |   |   | 1,155 |   |   |   | 965 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at End of Year                             |   | $ | 4,477 |   |   | $ | 4,352 |   |   | $ | 3,675 |   |   | $ | 4,729 |   |   | $ | 4,334 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans at End of Year (Net of Allowance)            |   | $ | 243,287 |   |   | $ | 262,259 |   |   | $ | 306,678 |   |   | $ | 338,460 |   |   | $ | 322,324 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio: Allowance to Loans                          |   |   | 1.84 | % |   |   | 1.66 | % |   |   | 1.20 | % |   |   | 1.40 | % |   |   | 1.34 | % |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Loans                                      |   | $ | 258,541 |   |   | $ | 286,433 |   |   | $ | 334,576 |   |   | $ | 340,689 |   |   | $ | 315,468 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio:  Allowance to Average Loans       |   |   | 1.73 | % |   |   | 1.52 | % |   |   | 1.10 | % |   |   | 1.39 | % |   |   | 1.37 | % |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio:  Net Charge-Offs to Average Loans |   |   | 0.85 | % |   |   | 1.13 | % |   |   | 3.44 | % |   |   | 0.22 | % |   |   | 0.17 | % |

----

| Table 8 - Nonperforming Assets |   |
|--------------------------------|--------|
| (in thousands)                 |   |
|                           |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Loans:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accrual                    |   | $ | 9,584 |   |   | $ | 15,244 |   |   | $ | 3,271 |   |   | $ | 1,043 |   |   | $ | 819 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 90 Days+ Past-Due              |   |   | 63 |   |   |   | 12 |   |   |   | 3,616 |   |   |   | 1,725 |   |   |   | 1,489 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Nonperforming Loans      |   | $ | 9,647 |   |   | $ | 15,256 |   |   | $ | 6,887 |   |   | $ | 2,768 |   |   | $ | 2,308 |   |
| As % of Total Loans            |   |   | 3.89 | % |   |   | 5.72 | % |   |   | 2.22 | % |   |   | 0.81 | % |   |   | 0.71 | % |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Real Estate              |   | $ | 20,272 |   |   | $ | 20,770 |   |   | $ | 14,046 |   |   | $ | 716 |   |   | $ | 365 |   |
| As % of Total Loans            |   |   | 8.18 | % |   |   | 7.79 | % |   |   | 4.53 | % |   |   | 0.21 | % |   |   | 0.11 | % |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses      |   | $ | 4,477 |   |   | $ | 4,352 |   |   | $ | 3,675 |   |   | $ | 4,729 |   |   | $ | 4,334 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Charge-Offs               |   | $ | 2,989 |   |   | $ | 4,329 |   |   | $ | 13,875 |   |   | $ | 2,400 |   |   | $ | 1,214 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Loans                    |   | $ | 247,764 |   |   | $ | 266,611 |   |   | $ | 310,353 |   |   | $ | 343,189 |   |   | $ | 326,658 |   |

----

----

|                                 |   | Table 8A - Allocation of the Allowance for Loan Losses |   |
|--------------------------------------|--------|--------------------------------------------------------|--------|
|                                 |   | (Dollars in thousands)                                 |   |
|                                 |   | At December 31,                                        |   |
|                                 |   | 2010                                                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                 |   | Amount                                                 |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Balance |   |   | Percent |   |   | Balance |   |   | Percent |   |
|                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, Financial                |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    & Agricultural |   | $                                                      | 310    |   |   |   | 6.92 | % |   | $ | 861 |   |   |   | 19.78 | % |   | $ | 367 |   |   |   | 9.99 | % |   | $ | 547 |   |   |   | 11.57 | % |   | $ | 590 |   |   |   | 13.61 | % |
|                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate - Construction           |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    & Development  |   |                                                   | 2,178  |   |   |   | 48.65 | % |   |   | 1,787 |   |   |   | 41.06 | % |   |   | 2,029 |   |   |   | 55.21 | % |   |   | 1,758 |   |   |   | 37.18 | % |   |   | 913 |   |   |   | 21.07 | % |
|                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate - Mortgage               |   |                                                   | 1,773  |   |   |   | 39.60 | % |   |   | 1,500 |   |   |   | 34.47 | % |   |   | 1,037 |   |   |   | 28.22 | % |   |   | 1,558 |   |   |   | 32.95 | % |   |   | 1,922 |   |   |   | 44.35 | % |
|                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Installment Loans                    |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to Individuals     |   |                                                   | 98     |   |   |   | 2.19 | % |   |   | 123 |   |   |   | 2.83 | % |   |   | 240 |   |   |   | 6.53 | % |   |   | 770 |   |   |   | 16.29 | % |   |   | 460 |   |   |   | 10.61 | % |
|                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Loans                          |   |                                                   | 118    |   |   |   | 2.64 | % |   |   | 81 |   |   |   | 1.86 | % |   |   | 2 |   |   |   | 0.05 | % |   |   | 95 |   |   |   | 2.01 | % |   |   | 413 |   |   |   | 9.53 | % |
|                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unallocated                          |   |                                                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 36 |   |   |   | 0.83 | % |
|                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Loans                          |   | $                                                      | 4,477  |   |   |   | 100.00 | % |   | $ | 4,352 |   |   |   | 100.00 | % |   | $ | 3,675 |   |   |   | 100.00 | % |   | $ | 4,728 |   |   |   | 100.00 | % |   | $ | 4,334 |   |   |   | 100.00 | % |
|                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| Table 9 - Securities          |   |
|-------------------------------|--------|
| (in thousands)                |   |
|                          |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Securities Available-for-Sale |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Agencies                |   | $ | 21,164 |   |   | $ | 21,258 |   |   | $ | 1,075 |   |   | $ | 1,536 |   |   | $ | 5,441 |   |
| Mortgage Backed               |   |   | 43,308 |   |   |   | 40,223 |   |   |   | 37,534 |   |   |   | 34,452 |   |   |   | 20,915 |   |
| State, Municipals & Other |   |   | 59,975 |   |   |   | 47,985 |   |   |   | 31,281 |   |   |   | 30,172 |   |   |   | 34,672 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Securities AFS          |   |   | 124,447 |   |   |   | 109,466 |   |   |   | 69,890 |   |   |   | 66,160 |   |   |   | 61,028 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held-to-Maturity   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Agencies                |   |   | 25,578 |   |   |   | 9,614 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| State, Municipals & Other |   |   | 7,517 |   |   |   | 5,145 |   |   |   | 5,375 |   |   |   | 7,235 |   |   |   | 7,850 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Securities HTM          |   |   | 33,095 |   |   |   | 14,759 |   |   |   | 5,375 |   |   |   | 7,235 |   |   |   | 7,850 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Securities              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equities                      |   |   | 1,933 |   |   |   | 2,223 |   |   |   | 2,218 |   |   |   | 2,024 |   |   |   | 2,250 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Securities              |   | $ | 159,475 |   |   | $ | 126,448 |   |   | $ | 77,483 |   |   | $ | 75,419 |   |   | $ | 71,128 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Table 10                            |   |
|-------------------------------------|--------|
| Securities & Repricing Schedule |   |
| For 12/31/2010                      |   |
| (in thousands)                      |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   | 1 Year |   |   | After 1 Year |   |   | 5 to 10 |   |   | Over |   |
|                                |   | and Less |   |   | Thru 5 Years |   |   | Years |   |   | 10 Years |   |
| Agencies                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair Value                          |   | $ | 1,010 |   |   | $ | 1,539 |   |   | $ | 10,368 |   |   | $ | 33,217 |   |
| Book Yield                          |   |   | 5.100 |   |   |   | 1.262 |   |   |   | 1.789 |   |   |   | 1.812 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable Municipals                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair Value                          |   |   | 26 |   |   |   | 145 |   |   |   | 612 |   |   |   | 3,421 |   |
| Book Yield                          |   |   | 4.527 |   |   |   | 4.790 |   |   |   | 4.250 |   |   |   | 5.305 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipals                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair Value                          |   |   | 9,556 |   |   |   | 32,425 |   |   |   | 11,118 |   |   |   | 10,230 |   |
| Book Yield                          |   |   | 3.178 |   |   |   | 3.677 |   |   |   | 4.897 |   |   |   | 6.577 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity-FHLB                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,433 |   |
| Book Yield                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5.080 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Securities                    |   |   | 13 |   |   |   | - |   |   |   | - |   |   |   | 500 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| MBS                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair Value                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 43,308 |   |
| Book Yield                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4.501 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Fair Values                   |   | $ | 10,605 |   |   | $ | 34,109 |   |   | $ | 22,098 |   |   | $ | 92,109 |   |
| Weigh Bk Yields                     |   |   | 3.360 |   |   |   | 3.573 |   |   |   | 3.421 |   |   |   | 3.776 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Table 11                                                                |   |
|-------------------------------------------------------------------------|--------|
| Securities Weighted Maturity and Tax Equivalent Yield by Classification |   |
| December 31, 2010                                                       |   |
|                                                                    |   |   |   |   |   |   |
|                                                                    |   | Weighted |   |   | Weighted |   |
|                                                                    |   | Maturity |   |   | Tax-Equivalent |   |
|                                                                    |   | (Years) |   |   | Yield |   |
| U. S. Agencies                                                          |   |   | 12.32 |   |   |   | 1.860 | % |
| Mortgage Backed                                                         |   |   | 4.11 |   |   |   | 4.501 | % |
| Taxable Municipals                                                      |   |   | 10.70 |   |   |   | 5.137 | % |
| Tax-Exempt Municipals                                                   |   |   | 5.17 |   |   |   | 4.303 | % |
|                                                                    |   |   |   |   |   |   |   |   |
| Total Securities Portfolio                                              |   |   | 7.136 |   |   |   | 3.614 | % |

----

| Table 12 - Deposit Information  |   |
|---------------------------------|--------|
| (in thousands)                  |   |
|                            |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                            |   | Average |   |   | Avg |   |   | Average |   |   | Avg |   |   | Average |   |   | Avg |   |   | Average |   |   | Avg |   |   | Average |   |   | Avg |   |
|                            |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |
| Noninterest- Bearing            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Demand        |   | $ | 69,143 |   |   |   |   |   | $ | 58,940 |   |   |   |   |   | $ | 59,286 |   |   |   |   |   | $ | 56,816 |   |   |   |   |   | $ | 58,635 |   |   |   |   |
|    Savings       |   |   | 279 |   |   |   |   |   |   | 261 |   |   |   |   |   |   | 258 |   |   |   |   |   |   | 251 |   |   |   |   |   |   | 242 |   |   |   |   |
| Interest-bearing                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Demand        |   |   | 155,585 |   |   |   | 0.70 |   |   |   | 140,946 |   |   |   | 0.70 |   |   |   | 135,517 |   |   |   | 1.30 |   |   |   | 135,369 |   |   |   | 2.76 |   |   |   | 132,447 |   |   |   | 2.65 |   |
|    Savings       |   |   | 27,771 |   |   |   | 0.35 |   |   |   | 26,512 |   |   |   | 0.35 |   |   |   | 28,442 |   |   |   | 0.71 |   |   |   | 29,932 |   |   |   | 1.52 |   |   |   | 31,363 |   |   |   | 1.50 |   |
|    Time Deposits |   |   | 156,388 |   |   |   | 2.10 |   |   |   | 144,736 |   |   |   | 2.10 |   |   |   | 162,006 |   |   |   | 3.49 |   |   |   | 168,032 |   |   |   | 4.86 |   |   |   | 144,549 |   |   |   | 4.27 |   |
|                            |   | $ | 409,166 |   |   |   |   |   |   | $ | 371,395 |   |   |   |   |   |   | $ | 385,509 |   |   |   |   |   |   | $ | 390,400 |   |   |   |   |   |   | $ | 367,236 |   |   |   |   |   |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Table 13 - Maturity Ranges of Time Deposits |   |
|---------------------------------------------|--------|
| With Balances More Than $100,000            |   |
| As of December 31, 2010                     |   |
| (in thousands)                              |   |
|                                        |   |   |   |
| 3 Months or Less                            |   | $ | 32,412 |   |
| Over 3 Months thru 6 Months                 |   |   | 19,245 |   |
| Over 6 Months thru 12 Months                |   |   | 23,037 |   |
| Over 12 Months                              |   |   | 6,191 |   |
|                                        |   | $ | 80,885 |   |
|                                        |   |   |   |   |
|                                        |   |   |   |   |

----

----

----

| Table 14 - Funding Uses and Sources                          |   |
|--------------------------------------------------------------|--------|
| (in thousands)                                               |   |
|                                                         |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                         |   |   |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |   |   |   |
|                                                         |   | Average |   |   | (Decrease) |   |   | % |   |   | Average |   |   | (Decrease) |   |   | % |   |   | Average |   |   | (Decrease) |   |   | % |   |
|                                                         |   | Balance |   |   | Amount |   |   | Change |   |   | Balance |   |   | Amount |   |   | Change |   |   | Balance |   |   | Amount |   |   | Change |   |
| Funding Uses                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                        |   | $ | 258,541 |   |   | $ | (27,892 | ) |   |   | (9.74 | ) |   | $ | 286,433 |   |   | $ | (48,143 | ) |   |   | (14.39 | ) |   | $ | 334,576 |   |   | $ | (6,113 | ) |   |   | (1.79 | ) |
| Securities*                                                  |   |   | 145,905 |   |   |   | 60,233 |   |   |   | 70.31 |   |   |   | 85,672 |   |   |   | 7,484 |   |   |   | 9.57 |   |   |   | 78,188 |   |   |   | 5,534 |   |   |   | 7.62 |   |
| Federal Funds Sold                                           |   |   | 27,681 |   |   |   | 6,899 |   |   |   | 33.20 |   |   |   | 20,782 |   |   |   | 17,279 |   |   |   | 493.26 |   |   |   | 3,503 |   |   |   | 600 |   |   |   | 20.67 |   |
|                                                         |   |   | 432,127 |   |   |   | 39,240 |   |   |   | 9.99 |   |   |   | 392,887 |   |   |   | (23,380 | ) |   |   | (5.62 | ) |   |   | 416,267 |   |   |   | 21 |   |   |   | 0.01 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Funding Sources                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest Bearing Deposits                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Demand Deposits                            |   |   | 69,143 |   |   |   | 10,203 |   |   |   | 17.31 |   |   |   | 58,940 |   |   |   | (346 | ) |   |   | (0.58 | ) |   |   | 59,286 |   |   |   | 2,470 |   |   |   | 4.35 |   |
|    Savings Deposits                           |   |   | 279 |   |   |   | 18 |   |   |   | 6.90 |   |   |   | 261 |   |   |   | 3 |   |   |   | 1.16 |   |   |   | 258 |   |   |   | 7 |   |   |   | 2.79 |   |
| Interest Bearing Deposits                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Demand Deposits                            |   |   | 155,585 |   |   |   | 14,639 |   |   |   | 10.39 |   |   |   | 140,946 |   |   |   | 5,429 |   |   |   | 4.01 |   |   |   | 135,517 |   |   |   | 148 |   |   |   | 0.11 |   |
|    Savings Deposits                           |   |   | 27,771 |   |   |   | 1,259 |   |   |   | 4.75 |   |   |   | 26,512 |   |   |   | (1,930 | ) |   |   | (6.79 | ) |   |   | 28,442 |   |   |   | (1,490 | ) |   |   | (4.98 | ) |
|    Time Deposits                              |   |   | 156,388 |   |   |   | 11,652 |   |   |   | 8.05 |   |   |   | 144,736 |   |   |   | (17,270 | ) |   |   | (10.66 | ) |   |   | 162,006 |   |   |   | (6,027 | ) |   |   | (3.59 | ) |
| Borrowings                                                   |   |   | 27,219 |   |   |   | (3,493 | ) |   |   | (11.37 | ) |   |   | 30,712 |   |   |   | (3,216 | ) |   |   | (9.48 | ) |   |   | 33,928 |   |   |   | 10,218 |   |   |   | 43.10 |   |
|                                                         |   | $ | 436,385 |   |   | $ | 34,278 |   |   |   | 8.52 |   |   | $ | 402,107 |   |   | $ | (17,330 | ) |   |   | (4.13 | ) |   | $ | 419,437 |   |   | $ | 5,326 |   |   |   | 1.29 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Cost basis is used for securities instead of market values. |   |

----

| Table 15 - Liquidity; Interest Rate Sensitivity |   |
|-------------------------------------------------|--------|
| (in thousands)                                  |   |
| As of December 31, 2010                         |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | Less |   |   | Over 3 Mos |   |   | Over 1 yr |   |   | Over |   |   |   |   |
|                                            |   | 3 Mos |   |   | thru 1 Yr |   |   | thru 3 Yrs |   |   | 3 Yrs |   |   | Total |   |
| Interest Earning Assets                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                           |   | $ | 115,287 |   |   | $ | 59,559 |   |   | $ | 52,214 |   |   | $ | 20,704 |   |   | $ | 247,764 |   |
| Short-Term Investments                          |   |   | 31,270 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 31,270 |   |
| Investment Securities                           |   |   | 9,635 |   |   |   | 29,649 |   |   |   | 57,634 |   |   |   | 62,557 |   |   |   | 159,475 |   |
| Other                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,650 |   |   |   | 6,650 |   |
| Total Interest Earning Assets                   |   |   | 156,192 |   |   |   | 89,208 |   |   |   | 109,848 |   |   |   | 89,911 |   |   |   | 445,159 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Bearing Liabilities                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                                             |   |   | 32,499 |   |   |   | - |   |   |   | 9,526 |   |   |   | 57,956 |   |   |   | 99,981 |   |
| Money Market                                    |   |   | 12,520 |   |   |   | - |   |   |   | 2,200 |   |   |   | 13,409 |   |   |   | 28,129 |   |
| Savings Deposits                                |   |   | 33,976 |   |   |   | - |   |   |   | 2,140 |   |   |   | 11,510 |   |   |   | 47,626 |   |
| Time Deposits                                   |   |   | 42,646 |   |   |   | 75,596 |   |   |   | 16,220 |   |   |   | 24,525 |   |   |   | 158,987 |   |
| Short-Term Borrowings                           |   |   | - |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Long-Term Borrowings                            |   |   | - |   |   |   | - |   |   |   | 11,309 |   |   |   | 13,818 |   |   |   | 25,127 |   |
| Total Interest Bearing Liabilities              |   | $ | 121,641 |   |   | $ | 76,596 |   |   | $ | 41,395 |   |   | $ | 121,218 |   |   | $ | 360,850 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rate Sensitive Assets (RSA)                     |   |   | 156,192 |   |   |   | 245,400 |   |   |   | 355,248 |   |   |   | 445,159 |   |   |   | 445,159 |   |
| Rate Sensitive Liabilities (RSL)                |   |   | 121,641 |   |   |   | 198,237 |   |   |   | 239,632 |   |   |   | 360,850 |   |   |   | 360,850 |   |
| Rate Sensitive Gap                              |   |   | 34,551 |   |   |   | 12,612 |   |   |   | 68,453 |   |   |   | (31,307 | ) |   |   | 84,309 |   |
| Rate Sensitive Cumulative Gap                   |   |   | 34,551 |   |   |   | 47,163 |   |   |   | 115,616 |   |   |   | 84,309 |   |   |   | 84,309 |   |
| Cumulative % of Earning Assets                  |   |   | 7.76 | % |   |   | 10.59 | % |   |   | 25.97 | % |   |   | 18.94 | % |   |   | 18.94 | % |
| Cumulative % of Total Assets                    |   |   | 6.74 | % |   |   | 9.20 | % |   |   | 22.56 | % |   |   | 16.45 | % |   |   | 16.45 | % |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Table 15A - Change in Net Interest Income Over One Year Horizon |   |
|-----------------------------------------------------------------|--------|
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   | (Dollars in Thousands) |   |
|                                                            |   | at December 31, 2010 |   |   | at December 31, 2009 |   |
|                                                            |   | Dollar |   |   | % |   |   | Dollar |   |   | % |   |
| Changes in Levels of Interest Rates                             |   | Change |   |   | Change |   |   | Change |   |   | Change |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase 2.00%                                                  |   | $ | 841 |   |   |   | 5.40 | % |   | $ | 479 |   |   |   | 2.90 | % |
| Increase 1.00%                                                  |   |   | 356 |   |   |   | 2.30 | % |   |   | 446 |   |   |   | 2.70 | % |
| Decrease 1.00%                                                  |   |   | (424 | ) |   |   | -2.70 | % |   |   | (73 | ) |   |   | -0.40 | % |
| Decrease 2.00%                                                  |   |   | (622 | ) |   |   | -4.00 | % |   |   | (228 | ) |   |   | -1.40 | % |

| As of December 31, 2009 and 2010, the neutral status is evident as reflected in the nominal, projected percentage changes, in the ramps, as shown above. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Adequacy |
|------------------|

----

| Table 16 - Capital Ratios           |   |
|-------------------------------------|--------|
| (Dollars in thousands)              |   |
|                                |   |   |   |   |   |   |   |   |   |
|                                |   | As of December 31, |   |
|                                |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Tier 1 Capital                      |   |   |   |   |   |   |   |   |   |
|                                |   |   |   |   |   |   |   |   |   |
| Total Tier 1 Capital                |   | $ | 66,803 |   |   | $ | 67,717 |   |   | $ | 51,597 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital                      |   |   | 66,803 |   |   |   | 67,717 |   |   |   | 51,597 |   |
| Allowable Allowance for Loan Losses |   |   | 3,942 |   |   |   | 4,117 |   |   |   | 3,675 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital                       |   | $ | 70,745 |   |   | $ | 71,834 |   |   | $ | 55,272 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk Weighted Assets                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Average Assets                  |   | $ | 514,677 |   |   | $ | 473,289 |   |   | $ | 463,804 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Risk Weighted Assets          |   | $ | 314,858 |   |   | $ | 329,554 |   |   | $ | 357,261 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk Based Ratios (%)               |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Leverage Ratio               |   |   | 12.98 |   |   |   | 14.31 |   |   |   | 11.12 |   |
| Tier 1 Risk Based Capital Ratio     |   |   | 21.22 |   |   |   | 20.55 |   |   |   | 14.44 |   |
| Total Risk Based Capital Ratio      |   |   | 22.47 |   |   |   | 21.80 |   |   |   | 15.47 |   |

----

| Tabular Disclosure of Contractual Obligations |   |
|-----------------------------------------------|--------|
| (in thousands)                                |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | Payment due by period |   |
|                                          |   |   |   |   | Less than |   |   | 1 to 3 |   |   | 3 to 5 |   |   | More Than |   |
| Contractual Obligations                       |   | Total |   |   | 1 Year |   |   | Years |   |   | Years |   |   | 5 Years |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term Debt Obligations                    |   | $ | 26,127 |   |   | $ | 1,819 |   |   | $ | 12,304 |   |   | $ | 2,860 |   |   | $ | 9,144 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Lease Obligations                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Lease Obligations                   |   |   | 20 |   |   |   | 10 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase Obligations                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Long-Term Liabilities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reflected on the Registrant's                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet under GAAP                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $ | 26,147 |   |   | $ | 1,829 |   |   | $ | 12,314 |   |   | $ | 2,860 |   |   | $ | 9,144 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

| SECURITY CAPITAL CORPORATION                    |   |
|-------------------------------------------------|--------|
| SELECTED FINANCIAL DATA                         |   |
| YEARS ENDED DECEMBER 31,                        |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                            |   | (In thousands, except per share data) |   |
| INCOME DATA                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                      |   | $ | 15,176 |   |   | $ | 17,418 |   |   | $ | 23,063 |   |   | $ | 30,283 |   |   | $ | 27,013 |   |
| Interest and dividends on securities            |   |   | 4,512 |   |   |   | 3,515 |   |   |   | 3,712 |   |   |   | 3,403 |   |   |   | 3,294 |   |
| Other interest income                           |   |   | 97 |   |   |   | 134 |   |   |   | 296 |   |   |   | 447 |   |   |   | 279 |   |
|    Total interest income         |   |   | 19,785 |   |   |   | 21,067 |   |   |   | 27,071 |   |   |   | 34,133 |   |   |   | 30,586 |   |
| Interest expense                                |   |   | 4,276 |   |   |   | 5,373 |   |   |   | 8,993 |   |   |   | 13,699 |   |   |   | 11,523 |   |
|    Net interest income           |   |   | 15,509 |   |   |   | 15,694 |   |   |   | 18,078 |   |   |   | 20,434 |   |   |   | 19,063 |   |
| Provision for loan losses                       |   |   | 2,325 |   |   |   | 3,911 |   |   |   | 10,456 |   |   |   | 1,155 |   |   |   | 965 |   |
| Net interest income after provision for         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    loan losses                   |   |   | 13,184 |   |   |   | 11,783 |   |   |   | 7,622 |   |   |   | 19,279 |   |   |   | 18,098 |   |
| Service charges on deposit accounts             |   |   | 4,354 |   |   |   | 4,826 |   |   |   | 5,172 |   |   |   | 5,152 |   |   |   | 4,592 |   |
| Other income                                    |   |   | 2,001 |   |   |   | 1,798 |   |   |   | 2,576 |   |   |   | 1,697 |   |   |   | 2,334 |   |
|    Total noninterest income      |   |   | 6,355 |   |   |   | 6,624 |   |   |   | 7,748 |   |   |   | 6,849 |   |   |   | 6,926 |   |
| Salaries and employee benefits                  |   |   | 9,559 |   |   |   | 10,456 |   |   |   | 10,227 |   |   |   | 10,141 |   |   |   | 9,276 |   |
| Occupancy and equipment expense                 |   |   | 2,405 |   |   |   | 2,447 |   |   |   | 2,475 |   |   |   | 2,302 |   |   |   | 1,888 |   |
| Other expenses                                  |   |   | 6,529 |   |   |   | 5,234 |   |   |   | 3,507 |   |   |   | 3,095 |   |   |   | 3,271 |   |
|    Total noninterest expenses    |   |   | 18,493 |   |   |   | 18,137 |   |   |   | 16,209 |   |   |   | 15,538 |   |   |   | 14,435 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes               |   |   | 1,046 |   |   |   | 270 |   |   |   | (839 | ) |   |   | 10,590 |   |   |   | 10,589 |   |
| Income taxes (benefit)                          |   |   | (256 | ) |   |   | (528 | ) |   |   | (1,022 | ) |   |   | 3,155 |   |   |   | 3,349 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                      |   | $ | 1,302 |   |   | $ | 798 |   |   | $ | 183 |   |   | $ | 7,435 |   |   | $ | 7,240 |   |
| Preferred dividends                             |   |   | 1,014 |   |   |   | 585 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net income applicable to                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     common shareholders     |   | $ | 288 |   |   | $ | 213 |   |   | $ | 183 |   |   | $ | 7,435 |   |   | $ | 7,240 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PER COMMON SHARE DATA (1)                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic net income - per common share             |   | $ | 0.10 |   |   | $ | 0.07 |   |   | $ | 0.06 |   |   | $ | 2.58 |   |   | $ | 2.51 |   |
| Dividends                                       |   |   | 0.50 |   |   |   | 0.50 |   |   |   | 0.50 |   |   |   | 1.00 |   |   |   | 0.95 |   |
| Book value                                      |   |   | 24.94 |   |   |   | 25.24 |   |   |   | 19.42 |   |   |   | 19.76 |   |   |   | 18.05 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER RATIOS (%)                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on Average Assets                        |   |   | 0.06 |   |   |   | 0.04 |   |   |   | 0.04 |   |   |   | 1.54 |   |   |   | 1.58 |   |
| Return on Average Equity                        |   |   | 0.39 |   |   |   | 0.32 |   |   |   | 0.31 |   |   |   | 13.44 |   |   |   | 14.36 |   |
| Loans to Deposits                               |   |   | 60.62 |   |   |   | 69.52 |   |   |   | 86.82 |   |   |   | 88.28 |   |   |   | 89.08 |   |
| Loans to Total Assets                           |   |   | 48.35 |   |   |   | 54.26 |   |   |   | 67.11 |   |   |   | 72.02 |   |   |   | 71.27 |   |
| Equity Capital to Total Assets                  |   |   | 14.03 |   |   |   | 14.81 |   |   |   | 12.10 |   |   |   | 11.95 |   |   |   | 11.34 |   |
| Average Equity to Average Assets                |   |   | 14.39 |   |   |   | 14.08 |   |   |   | 12.15 |   |   |   | 11.43 |   |   |   | 10.99 |   |
| Dividend Payout Ratio                           |   |   | 500.00 |   |   |   | 676.79 |   |   |   | 787.58 |   |   |   | 38.76 |   |   |   | 37.90 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCIAL DATA                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                    |   | $ | 512,482 |   |   | $ | 491,372 |   |   | $ | 462,485 |   |   | $ | 476,530 |   |   | $ | 458,329 |   |
| Net loans                                       |   |   | 243,287 |   |   |   | 262,259 |   |   |   | 306,678 |   |   |   | 338,460 |   |   |   | 322,324 |   |
| Total deposits                                  |   |   | 408,743 |   |   |   | 383,500 |   |   |   | 357,483 |   |   |   | 388,733 |   |   |   | 366,669 |   |
| Total shareholders' equity                      |   |   | 71,913 |   |   |   | 72,780 |   |   |   | 55,979 |   |   |   | 56,939 |   |   |   | 51,984 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Restated for stock dividends, if applicable |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| SECURITY CAPITAL CORPORATION                                                                                  |   |
|---------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                   |   |
| DECEMBER 31, 2010 AND 2009                                                                                    |   |
|                                                                                                          |   |   |   |   |   |   |
| ASSETS                                                                                                        |   | 2010 |   |   | 2009 |   |
|                                                                                                          |   | (In thousands) |   |
|                                                                                                          |   |   |   |   |   |   |
| Cash and due from banks                                                                                       |   | $ | 14,822 |   |   | $ | 16,722 |   |
| Interest-bearing deposits with banks                                                                          |   |   | 442 |   |   |   | 323 |   |
|    Total cash and cash equivalents                                                             |   |   | 15,264 |   |   |   | 17,045 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
| Federal funds sold                                                                                            |   |   | 31,270 |   |   |   | 20,550 |   |
| Certificates of deposit with other banks                                                                      |   |   | 1,778 |   |   |   | 296 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
| Securities available-for-sale                                                                                 |   |   | 124,447 |   |   |   | 109,466 |   |
| Securities held-to-maturity  (estimated fair value of $32,541 in 2010 and $14,781 in 2009)          |   |   | 33,095 |   |   |   | 14,759 |   |
| Securities, other                                                                                             |   |   | 1,933 |   |   |   | 2,223 |   |
|    Total securities                                                                            |   |   | 159,475 |   |   |   | 126,448 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
| Loans, less allowance for loan losses of $4,477 in 2010 and $4,352 in 2009                                    |   |   | 243,287 |   |   |   | 262,259 |   |
| Interest receivable                                                                                           |   |   | 2,902 |   |   |   | 3,235 |   |
| Premises and equipment                                                                                        |   |   | 22,922 |   |   |   | 23,908 |   |
| Other real estate                                                                                             |   |   | 20,272 |   |   |   | 20,770 |   |
| Goodwill                                                                                                      |   |   | 3,874 |   |   |   | 3,874 |   |
| Cash surrender value of life insurance                                                                        |   |   | 6,650 |   |   |   | 6,444 |   |
| Customers' liability on acceptances                                                                           |   |   | 1,142 |   |   |   | 1,429 |   |
| Other assets                                                                                                  |   |   | 3,646 |   |   |   | 5,114 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                  |   | $ | 512,482 |   |   | $ | 491,372 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                  |   |   |   |   |   |   |   |   |
|    Noninterest-bearing deposits                                                                |   | $ | 74,022 |   |   | $ | 61,673 |   |
|    Interest-bearing deposits                                                                   |   |   | 334,721 |   |   |   | 321,827 |   |
|       Total deposits                                                            |   |   | 408,743 |   |   |   | 383,500 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
|    Interest payable                                                                            |   |   | 419 |   |   |   | 556 |   |
|    Acceptances outstanding                                                                     |   |   | 1,142 |   |   |   | 1,429 |   |
|    Borrowed funds                                                                              |   |   | 26,970 |   |   |   | 28,912 |   |
|    Other liabilities                                                                           |   |   | 3,295 |   |   |   | 4,195 |   |
|       Total liabilities                                                         |   |   | 440,569 |   |   |   | 418,592 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
| Shareholders' equity:                                                                                         |   |   |   |   |   |   |   |   |
|    Preferred stock, $1,000 par value, 25,000 shares authorized, 17,910 shares issued           |   |   | 17,742 |   |   |   | 17,504 |   |
|    Common stock - $5 par value, 10,000,000 shares authorized, 2,890,811 shares issued          |   |   | 14,454 |   |   |   | 14,454 |   |
|    Surplus                                                                                     |   |   | 40,733 |   |   |   | 40,732 |   |
|    Retained earnings (deficit)                                                                 |   |   | (2,214 | ) |   |   | (1,061 | ) |
|    Accumulated other comprehensive income                                                      |   |   | 1,236 |   |   |   | 1,189 |   |
|    Treasury stock, at par, 7,602 shares and 7,652 shares issued in 2010 and 2009, respectively |   |   | (38 | ) |   |   | (38 | ) |
|          Total shareholders' equity                              |   |   | 71,913 |   |   |   | 72,780 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |
| Total Liabilities and Shareholders' Equity                                                                    |   | $ | 512,482 |   |   | $ | 491,372 |   |

----

| SECURITY CAPITAL CORPORATION                                          |   |
|-----------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF INCOME                                     |   |
| YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008                          |   |
|                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                  |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                  |   | (In thousands, except per share data) |   |
| INTEREST INCOME                                                       |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                                            |   | $ | 15,176 |   |   | $ | 17,418 |   |   | $ | 23,063 |   |
| Interest and dividends on securities:                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|    Taxable                                             |   |   | 2,877 |   |   |   | 2,101 |   |   |   | 2,111 |   |
|    Tax-exempt                                          |   |   | 1,635 |   |   |   | 1,414 |   |   |   | 1,601 |   |
| Other                                                                 |   |   | 97 |   |   |   | 134 |   |   |   | 296 |   |
|    Total interest income                               |   |   | 19,785 |   |   |   | 21,067 |   |   |   | 27,071 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST EXPENSE                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest on time deposits of $100,000 or more                         |   |   | 1,118 |   |   |   | 1,323 |   |   |   | 2,752 |   |
| Interest on other deposits                                            |   |   | 2,064 |   |   |   | 2,793 |   |   |   | 4,867 |   |
| Interest on borrowed funds                                            |   |   | 1,094 |   |   |   | 1,257 |   |   |   | 1,374 |   |
|    Total interest expense                              |   |   | 4,276 |   |   |   | 5,373 |   |   |   | 8,993 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                   |   |   | 15,509 |   |   |   | 15,694 |   |   |   | 18,078 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                             |   |   | 2,325 |   |   |   | 3,911 |   |   |   | 10,456 |   |
|    Net interest income after provision for loan losses |   |   | 13,184 |   |   |   | 11,783 |   |   |   | 7,622 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                                   |   |   | 4,354 |   |   |   | 4,826 |   |   |   | 5,172 |   |
| Other service charges and fees                                        |   |   | 635 |   |   |   | 649 |   |   |   | 797 |   |
| Trust Department income                                               |   |   | 837 |   |   |   | 814 |   |   |   | 752 |   |
| Securities gains                                                      |   |   | 11 |   |   |   | 20 |   |   |   | 13 |   |
| Gains (losses) on sale of other assets, net                           |   |   | 81 |   |   |   | (97 | ) |   |   | 552 |   |
| Income from other real estate                                         |   |   | 103 |   |   |   | 141 |   |   |   | - |   |
| Other                                                                 |   |   | 334 |   |   |   | 271 |   |   |   | 462 |   |
|    Total other income                                  |   |   | 6,355 |   |   |   | 6,624 |   |   |   | 7,748 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER EXPENSE                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                        |   |   | 9,559 |   |   |   | 10,456 |   |   |   | 10,227 |   |
| Net occupancy expense                                                 |   |   | 1,246 |   |   |   | 1,242 |   |   |   | 1,196 |   |
| Furniture and equipment expense                                       |   |   | 1,159 |   |   |   | 1,205 |   |   |   | 1,279 |   |
| Printing, stationery and supplies                                     |   |   | 242 |   |   |   | 248 |   |   |   | 235 |   |
| Data processing                                                       |   |   | 276 |   |   |   | 283 |   |   |   | 203 |   |
| FDIC assessments                                                      |   |   | 988 |   |   |   | 1,021 |   |   |   | 329 |   |
| Professional fees                                                     |   |   | 654 |   |   |   | 939 |   |   |   | 440 |   |
| Expenses from other real estate                                       |   |   | 743 |   |   |   | 539 |   |   |   | - |   |
| Other                                                                 |   |   | 3,626 |   |   |   | 2,204 |   |   |   | 2,300 |   |
|    Total other expense                                 |   |   | 18,493 |   |   |   | 18,137 |   |   |   | 16,209 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                     |   |   | 1,046 |   |   |   | 270 |   |   |   | (839 | ) |
| Income tax benefit                                                    |   |   | (256 | ) |   |   | (528 | ) |   |   | (1,022 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                            |   |   | 1,302 |   |   |   | 798 |   |   |   | 183 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred dividends and accretion                                     |   |   | 1,014 |   |   |   | 585 |   |   |   | - |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income applicable to common shareholders                          |   | $ | 288 |   |   | $ | 213 |   |   | $ | 183 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic net income per common share                                     |   | $ | 0.10 |   |   | $ | 0.07 |   |   | $ | 0.06 |   |

----

| SECURITY CAPITAL CORPORATION                                                                    |   |
|-------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY                                      |   |
| YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008                                                    |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   | Retained |   |   |   |   |   | Other |   |   |   |   |
|                                                                                            |   | Preferred |   |   | Common |   |   |   |   |   | Earnings |   |   | Treasury |   |   | Comprehensive |   |   |   |   |
|                                                                                            |   | Stock |   |   | Stock |   |   | Surplus |   |   | (Deficit) |   |   | Stock |   |   | Income |   |   | Total |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2008                                                                        |   | $ | - |   |   | $ | 14,454 |   |   | $ | 40,701 |   |   | $ | 1,502 |   |   | $ | (44 | ) |   | $ | 326 |   |   | $ | 56,939 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cumulative effect of adoption of ASC Subtopic 715-60                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (77 | ) |   |   | - |   |   |   | - |   |   |   | (77 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Comprehensive income:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Net income for 2008                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 183 |   |   |   | - |   |   |   | - |   |   |   | 183 |   |
|       Net change in unrealized gain (loss) on                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          securities available-for-sale, net of tax |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 350 |   |   |   | 350 |   |
|       Total comprehensive income                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 533 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cash dividends paid                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,441 | ) |   |   | - |   |   |   | - |   |   |   | (1,441 | ) |
|    Reissuance of treasury stock                                                  |   |   | - |   |   |   | - |   |   |   | 22 |   |   |   | - |   |   |   | 3 |   |   |   | - |   |   |   | 25 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                                                      |   |   | - |   |   |   | 14,454 |   |   |   | 40,723 |   |   |   | 167 |   |   |   | (41 | ) |   |   | 676 |   |   |   | 55,979 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Comprehensive income:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Net income for 2009                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 798 |   |   |   | - |   |   |   | - |   |   |   | 798 |   |
|       Net change in unrealized gain (loss) on                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          securities available-for-sale, net of tax |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 513 |   |   |   | 513 |   |
|       Total comprehensive income                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,311 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Issuance of preferred stock and warrants                                      |   |   | 17,388 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 17,388 |   |
|    Accretion on preferred stock                                                  |   |   | 116 |   |   |   | - |   |   |   | - |   |   |   | (116 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|    Cash and accrued dividends paid on preferred stock                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (469 | ) |   |   | - |   |   |   | - |   |   |   | (469 | ) |
|    Cash dividends paid on common stock                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,441 | ) |   |   | - |   |   |   | - |   |   |   | (1,441 | ) |
|    Reissuance of treasury stock                                                  |   |   | - |   |   |   | - |   |   |   | 9 |   |   |   | - |   |   |   | 3 |   |   |   | - |   |   |   | 12 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                                      |   | $ | 17,504 |   |   | $ | 14,454 |   |   | $ | 40,732 |   |   | $ | (1,061 | ) |   | $ | (38 | ) |   | $ | 1,189 |   |   | $ | 72,780 |   |

----

| SECURITY CAPITAL CORPORATION                                                                    |   |
|-------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY                                      |   |
| YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008                                                    |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   | Retained |   |   |   |   |   | Other |   |   |   |   |
|                                                                                            |   | Preferred |   |   | Common |   |   |   |   |   | Earnings |   |   | Treasury |   |   | Comprehensive |   |   |   |   |
|                                                                                            |   | Stock |   |   | Stock |   |   | Surplus |   |   | (Deficit) |   |   | Stock |   |   | Income |   |   | Total |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009 (brought forward)                                                    |   | $ | 17,504 |   |   | $ | 14,454 |   |   | $ | 40,732 |   |   | $ | (1,061 | ) |   | $ | (38 | ) |   | $ | 1,189 |   |   | $ | 72,780 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Comprehensive income:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Net income for 2010                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,302 |   |   |   | - |   |   |   | - |   |   |   | 1,302 |   |
|       Net change in unrealized gain (loss) on                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          securities available-for-sale, net of tax |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 47 |   |   |   | 47 |   |
|       Total comprehensive income                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,349 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Accretion on preferred stock                                                  |   |   | 238 |   |   |   | - |   |   |   | - |   |   |   | (238 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|    Cash and accrued dividends paid on preferred stock                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (775 | ) |   |   | - |   |   |   | - |   |   |   | (775 | ) |
|    Cash dividends paid on common stock                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,442 | ) |   |   | - |   |   |   | - |   |   |   | (1,442 | ) |
|    Reissuance of treasury stock                                                  |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                                                      |   | $ | 17,742 |   |   | $ | 14,454 |   |   | $ | 40,733 |   |   | $ | (2,214 | ) |   | $ | (38 | ) |   | $ | 1,236 |   |   | $ | 71,913 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| SECURITY CAPITAL CORPORATION                                                                  |   |
|-----------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                         |   |
| YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008                                                  |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                          |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                                          |   | (in thousands) |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
| Net income                                                                                    |   | $ | 1,302 |   |   | $ | 798 |   |   | $ | 183 |   |
| Adjustments to reconcile net income to net cash                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|    provided by operating activities:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|       Provision for loan losses                                 |   |   | 2,325 |   |   |   | 3,911 |   |   |   | 10,456 |   |
|       Amortization of premiums and discounts on securities, net |   |   | 1,567 |   |   |   | 449 |   |   |   | 69 |   |
|       Depreciation and amortization                             |   |   | 1,201 |   |   |   | 1,241 |   |   |   | 1,212 |   |
|       Deferred income taxes                                     |   |   | (548 | ) |   |   | 716 |   |   |   | 2,284 |   |
|       FHLB stock dividend                                       |   |   | (6 | ) |   |   | (4 | ) |   |   | (45 | ) |
|       (Gain) loss on sale of securities, net                    |   |   | (11 | ) |   |   | (20 | ) |   |   | (13 | ) |
|       (Gain) loss on sale of other assets, net                  |   |   | 157 |   |   |   | 97 |   |   |   | (552 | ) |
|       Changes in:                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|          Interest receivable                     |   |   | 333 |   |   |   | 498 |   |   |   | 2,425 |   |
|          Cash value of life insurance, net       |   |   | (221 | ) |   |   | (218 | ) |   |   | (211 | ) |
|          Other assets                            |   |   | 2,771 |   |   |   | 2,472 |   |   |   | (2,667 | ) |
|          Interest payable                        |   |   | (137 | ) |   |   | (461 | ) |   |   | (936 | ) |
|          Other liabilities                       |   |   | (639 | ) |   |   | (1,169 | ) |   |   | 20 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash provided by operating activities                                                     |   |   | 8,094 |   |   |   | 8,310 |   |   |   | 12,225 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of securities available-for-sale                                                     |   |   | (86,530 | ) |   |   | (62,345 | ) |   |   | (19,160 | ) |
| Proceeds of maturities and calls of securities available-for-sale                             |   |   | 70,346 |   |   |   | 23,139 |   |   |   | 13,016 |   |
| Proceeds from sales of securities available-for-sale                                          |   |   | - |   |   |   | - |   |   |   | 2,903 |   |
| Proceeds of maturities and calls of held-to-maturity                                          |   |   | 18,570 |   |   |   | 230 |   |   |   | 1,860 |   |
| Purchase of securities held-to-maturity                                                       |   |   | (37,185 | ) |   |   | (9,614 | ) |   |   | - |   |
| Purchase of other securities                                                                  |   |   | - |   |   |   | - |   |   |   | (572 | ) |
| Sale of other securities                                                                      |   |   | 296 |   |   |   | - |   |   |   | 422 |   |
| Additions to premises and equipment                                                           |   |   | (124 | ) |   |   | (730 | ) |   |   | (2,546 | ) |
| Proceeds of sale of other assets                                                              |   |   | 3,063 |   |   |   | 2,251 |   |   |   | 578 |   |
| Purchase of bank-owned life insurance                                                         |   |   | (21 | ) |   |   | - |   |   |   | - |   |
| Redemption of bank-owned life insurance                                                       |   |   | 36 |   |   |   | 60 |   |   |   | - |   |
| Changes in:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans                                                                       |   |   | 12,861 |   |   |   | 30,438 |   |   |   | 7,025 |   |
|    Federal funds sold                                                          |   |   | (10,720 | ) |   |   | (20,550 | ) |   |   | - |   |
|    Certificates of deposits with other banks                                   |   |   | (1,482 | ) |   |   | (98 | ) |   |   | - |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                           |   |   | (30,890 | ) |   |   | (37,219 | ) |   |   | 3,526 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from issuance of preferred stock                                                     |   | $ | - |   |   | $ | 17,388 |   |   | $ | - |   |
| Dividends paid on common stock                                                                |   |   | (1,442 | ) |   |   | (1,441 | ) |   |   | (1,441 | ) |
| Dividends paid on preferred stock                                                             |   |   | (845 | ) |   |   | (354 | ) |   |   | - |   |
| Reissuance of treasury stock                                                                  |   |   | 1 |   |   |   | 12 |   |   |   | 25 |   |
| Repayment of debt                                                                             |   |   | (1,942 | ) |   |   | (5,016 | ) |   |   | (12,799 | ) |
| Proceeds from issuance of debt                                                                |   |   | - |   |   |   | - |   |   |   | 23,256 |   |
| Changes in:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Deposits                                                                    |   |   | 25,243 |   |   |   | 26,017 |   |   |   | (31,250 | ) |
|    Federal funds purchased                                                     |   |   | - |   |   |   | (8,000 | ) |   |   | 4,000 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                           |   |   | 21,015 |   |   |   | 28,606 |   |   |   | (18,209 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                          |   |   | (1,781 | ) |   |   | (303 | ) |   |   | (2,458 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                |   |   | 17,045 |   |   |   | 17,348 |   |   |   | 19,806 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                      |   | $ | 15,264 |   |   | $ | 17,045 |   |   | $ | 17,348 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cash paid during the year for:                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|       Interest                                                  |   | $ | 4,413 |   |   | $ | 5,834 |   |   | $ | 9,929 |   |
|       Income taxes                                              |   |   | 256 |   |   |   | 56 |   |   |   | 610 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Noncash activities:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|       Transfers of loans to other real estate and               |   |   |   |   |   |   |   |   |   |   |   |   |
|          repossessed inventory                   |   |   | 5,569 |   |   |   | 10,993 |   |   |   | 15,550 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

----

----

----

|                                         |   | 2010                                  |   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                         |   | (In thousands, except per share data) |   |
| Basic Net Income Per Share                   |   |                                  |   |   |   |   |   |   |   |
|                                         |   |                                  |   |   |   |   |   |   |   |
| Weighted average common shares outstanding   |   |                                  | 2,883  |   |   |   | 2,883  |   |   |   | 2,882 |   |
| Net income                                   |   | $                                     | 1,302  |   |   | $      | 798    |   |   | $ | 183 |   |
| Basic net income per share                   |   | $                                     | 0.45   |   |   | $      | 0.28   |   |   | $ | 0.06 |   |
| Net income applicable to common shareholders |   | $                                     | 288    |   |   | $      | 213    |   |   | $ | 183 |   |
| Basic net income per share                   |   | $                                     | 0.10   |   |   | $      | 0.07   |   |   | $ | 0.06 |   |
|                                         |   |                                  |   |   |   |   |   |   |   |   |   |   |

----

----

----

|                                                               |   |           |    |   | Gross      |   |   | Gross      |   |   |       |   |
|--------------------------------------------------------------------|--------|----------------|---------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                                               |   | Amortized      |    |   | Unrealized |   |   | Unrealized |   |   | Estimated  |   |
|                                                               |   | Cost           |    |   | Gains      |   |   | Losses     |   |   | Fair Value |   |
|                                                               |   | (In thousands) |    |
| December 31, 2010:                                                 |   |           |    |   |       |   |   |       |   |   |       |   |
|    Securities available-for-sale:                   |   |           |    |   |       |   |   |       |   |   |       |   |
|       U. S. Government agencies      |   | $              | 21,242  |   |       | $      | 51     |       |   | $      | 143        |   |   | $ | 21,150 |   |
|       Mortgage-backed securities     |   |           | 41,733  |   |       |   | 1,688  |       |   |   | 112        |   |   |   | 43,309 |   |
|       State and local political      |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|          subdivisions |   |           | 59,497  |   |       |   | 929    |       |   |   | 451        |   |   |   | 59,975 |   |
|       Other equity securities        |   |           | 4       |   |       |   | 9      |       |   |   | -          |   |   |   | 13 |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|                                                               |   | $              | 122,476 |   |       | $      | 2,677  |       |   | $      | 706        |   |   | $ | 124,447 |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|    Securities held-to maturity:                     |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|       U. S. Government agencies      |   | $              | 25,578  |   |       | $      | 5      |       |   | $      | 600        |   |   | $ | 24,983 |   |
|       State and local political      |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|          subdivisions |   |           | 7,517   |   |       |   | 84     |       |   |   | 43         |   |   |   | 7,558 |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|                                                               |   | $              | 33,095  |   |       | $      | 89     |       |   | $      | 643        |   |   | $ | 32,541 |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |

----

|                                                               |   |           |    |   | Gross      |   |   | Gross      |   |   |       |   |
|--------------------------------------------------------------------|--------|----------------|---------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                                               |   | Amortized      |    |   | Unrealized |   |   | Unrealized |   |   | Estimated  |   |
|                                                               |   | Cost           |    |   | Gains      |   |   | Losses     |   |   | Fair Value |   |
|                                                               |   | (In thousands) |    |
| December 31,2009:                                                  |   |           |    |   |       |   |   |       |   |   |       |   |
|    Securities available-for-sale:                   |   |           |    |   |       |   |   |       |   |   |       |   |
|       U. S. Government agencies      |   | $              | 21,541  |   |       | $      | 69     |       |   | $      | 358        |   |   | $ | 21,252 |   |
|       Mortgage-backed securities     |   |           | 38,641  |   |       |   | 1,608  |       |   |   | 26         |   |   |   | 40,223 |   |
|       State and local political      |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|          subdivisions |   |           | 47,384  |   |       |   | 901    |       |   |   | 300        |   |   |   | 47,985 |   |
|       Other equity securities        |   |           | 4       |   |       |   | 2      |       |   |   | -          |   |   |   | 6 |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|                                                               |   | $              | 107,570 |   |       | $      | 2,580  |       |   | $      | 684        |   |   | $ | 109,466 |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|    Securities held-to maturity:                     |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|       U. S. Government agencies      |   | $              | 9,614   |   |       | $      | -      |       |   | $      | 371        |   |   | $ | 9,243 |   |
|       State and local political      |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|          subdivisions |   |           | 5,145   |   |       |   | 393    |       |   |   | -          |   |   |   | 5,538 |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |
|                                                               |   | $              | 14,759  |   |       | $      | 393    |       |   | $      | 371        |   |   | $ | 14,781 |   |
|                                                               |   |           |    |   |       |   |   |       |   |   |       |   |   |   |   |   |

| Securities                         |   |
|------------------------------------|--------|
| Scheduled Maturities               |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   | Available-For-Sale |   |   | Held-to-Maturity |   |
|                               |   | Amortized |   |   | Estimated |   |   | Amortized |   |   | Estimated |   |
|                               |   | Cost |   |   | Fair Value |   |   | Cost |   |   | Fair Value |   |
|                               |   | (In thousands) |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Within one year                    |   | $ | 10,213 |   |   | $ | 10,272 |   |   | $ | 320 |   |   | $ | 320 |   |
| Over one year through five years   |   |   | 32,196 |   |   |   | 32,847 |   |   |   | 1,245 |   |   |   | 1,262 |   |
| After five years through ten years |   |   | 15,931 |   |   |   | 15,945 |   |   |   | 6,137 |   |   |   | 6,154 |   |
| After 10 years                     |   |   | 22,399 |   |   |   | 22,062 |   |   |   | 25,393 |   |   |   | 24,805 |   |
| Mortgage-backed securities         |   |   | 41,733 |   |   |   | 43,308 |   |   |   | - |   |   |   | - |   |
| Other equity securities            |   |   | 4 |   |   |   | 13 |   |   |   | - |   |   |   | - |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   | $ | 122,476 |   |   | $ | 124,447 |   |   | $ | 33,095 |   |   | $ | 32,541 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|   |                      |                                                                      | Losses < 12 Months                                                     | Losses 12 Months or >                                                  | Total                                                                                                   |
|--------|---------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|   |                      |                                                                      |                                                                      | Gross                                                                     |                                                                                                    | Gross |   | Gross |
|   |                      |                                                                      | Fair                                                                      | Unrealized                                                                | Fair                                                                                                    | Unrealized | Fair | Unrealized |
|   |                      |                                                                      | Value                                                                     | Losses                                                                    | Value                                                                                                   | Losses | Value | Losses |
|   | 2010                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |
|   | U. S. Government          |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | agencies                  |  $   8,924                                            |  $     143                                  |  $         -            |  $              -            |  $   8,924 |  $     143 |
|   | Mortgage-backed           |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | securities                |     11,524                                            |         112                       |             - |                  - |     11,524 |         112 |
|   | State and local political |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | subdivisions              |     17,202                                            |         369                       |       1,236                                 |                82            |     18,438 |         451 |
|   | Other equity securities   |             - |             - |             - |                  - |             - |             - |
|   |                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |
|   |                      |                                                                      |  $ 37,650                                                            |  $     624                                  |  $   1,236                                                                          |  $            82 |  $ 38,886 |  $     706 |
|   |                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |
|   | 2009                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |
|   | U. S. Government          |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | agencies                  |  $ 17,186                                                            |  $     358                                  |  $         -            |  $              -            |  $ 17,186 |  $     358 |
|   | Mortgage-backed           |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | securities                |       3,760                                 |           26            |             - |                  - |       3,760 |           26 |
|   | State and local political |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | subdivisions              |     11,734                                            |         235                       |         436                       |                65            |     12,170 |         300 |
|   | Other equity securities   |             - |             - |             - |                  - |             - |             - |
|   |                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |
|   |                      |                                                                      |  $ 32,680                                                            |  $     619                                  |  $     436                                                                |  $            65 |  $ 33,116 |  $     684 |
|   |                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |

----

|   |                      |                                                                      | Losses < 12 Months                                                     | Losses 12 Months or >                                                  | Total                                                                                                   |
|--------|---------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|   |                      |                                                                      |                                                                      | Gross                                                                     |                                                                                                    | Gross |   | Gross |
|   |                      |                                                                      | Fair                                                                      | Unrealized                                                                | Fair                                                                                                    | Unrealized | Fair | Unrealized |
|   |                      |                                                                      | Value                                                                     | Losses                                                                    | Value                                                                                                   | Losses | Value | Losses |
|   | 2010                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |
|   | U. S. Government          |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | agencies                  |  $ 19,675                                                            |  $     600                                  |  $         -            |  $              -            |  $ 19,675 |  $     600 |
|   | State and local political |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | subdivisions              |       2,144                                 |           43            |             - |                  - |       2,144 |           43 |
|   |                      |                                                                      |  $ 21,819                                                            |  $     643                                  |  $         -                                          |  $              - |  $ 21,819 |  $     643 |
|   |                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |
|   | 2009                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |
|   | U. S. Government          |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | agencies                  |  $   9,243                                            |  $     371                                  |  $         -            |  $              -            |  $   9,243 |  $     371 |
|   | State and local political |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |
|   | subdivisions              |             - |             - |             - |                  - |             - |             - |
|   |                      |                                                                      |  $   9,243                                            |  $     371                                  |  $         -                                          |  $              - |  $   9,243 |  $     371 |
|   |                      |                                                                      |                                                                      |                                                                      |                                                                                                    |   |   |   |

----

|   | Major classifications of loans were as follows: |
|--------|-------------------------------------------------|

|                                       |   | December 31,   |    |
|--------------------------------------------|--------|----------------|---------|
|                                       |   | 2010           |    |   | 2009 |   |
|                                       |   | (In thousands) |    |
|                                       |   |           |    |   |   |   |
| Commercial, financial and agricultural     |   | $              | 33,347  |   |   | $ | 30,580 |   |
| Real estate - construction and development |   |           | 56,673  |   |   |   | 69,797 |   |
| Real estate - mortgage                     |   |           | 134,964 |   |   |   | 142,917 |   |
| Installment loans to individuals           |   |           | 20,186  |   |   |   | 20,702 |   |
| Other                                      |   |           | 2,594   |   |   |   | 2,615 |   |
|                                       |   |           | 247,764 |   |   |   | 266,611 |   |
| Less allowance for loan losses             |   |           | (4,477  | ) |   |   | (4,352 | ) |
|                                       |   | $              | 243,287 |   |   | $ | 262,259 |   |
|                                       |   |           |    |   |   |   |   |   |

|                                   |   | Years Ended December 31, |   |
|----------------------------------------|--------|--------------------------|--------|
|                                   |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                   |   |                     |   |   | (In thousands) |   |   |   |   |
|                                   |   |                     |   |   |   |   |   |   |   |
| Balance at beginning of year           |   | $                        | 4,352  |   |   | $ | 3,675 |   |   | $ | 4,729 |   |
| Charge-offs during year                |   |                     | (2,989 | ) |   |   | (4,329 | ) |   |   | (13,875 | ) |
| Recoveries on loans previously         |   |                     |   |   |   |   |   |   |   |   |   |   |
|    charged off          |   |                     | 789    |   |   |   | 1,095 |   |   |   | 2,365 |   |
| Provision charged to operating expense |   |                     | 2,325  |   |   |   | 3,911 |   |   |   | 10,456 |   |
|                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance at end of year                 |   | $                        | 4,477  |   |   | $ | 4,352 |   |   | $ | 3,675 |   |
|                                   |   |                     |   |   |   |   |   |   |   |   |   |   |

----

|                               |   |           |    |   | Installment |   |   | Commercial,     |   |   |   |   |
|------------------------------------|--------|----------------|---------|--------|-------------|--------|--------|-----------------|--------|--------|--------|--------|
|                               |   |           |    |   | and         |   |   | Financial       |   |   |   |   |
|                               |   | Real Estate    |    |   | Other       |   |   | and Agriculture |   |   | Total  |   |
|                               |   | (In thousands) |    |
| Loans                              |   |           |    |   |        |   |   |            |   |   |   |   |
|   Individually evaluated |   | $              | 44,284  |   |        | $      | 28     |            |   | $      | 950    |   |   | $ | 45,262 |   |
|   Collectively evaluated |   |           | 147,359 |   |        |   | 22,752 |            |   |   | 32,391 |   |   |   | 202,502 |   |
| Total                              |   | $              | 191,643 |   |        | $      | 22,780 |            |   | $      | 33,341 |   |   | $ | 247,764 |   |
|                               |   |           |    |   |        |   |   |            |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses          |   |           |    |   |        |   |   |            |   |   |   |   |   |   |   |   |
|   Individually evaluated |   | $              | 2,870   |   |        | $      | 1      |            |   | $      | 8      |   |   | $ | 2,879 |   |
|   Collectively evaluated |   |           | 1,136   |   |        |   | 215    |            |   |   | 247    |   |   |   | 1,598 |   |
| Total                              |   | $              | 4,006   |   |        | $      | 216    |            |   | $      | 255    |   |   | $ | 4,477 |   |
|                               |   |           |    |   |        |   |   |            |   |   |   |   |   |   |   |   |

----

|                                                        |   | December 31,   |       |
|-------------------------------------------------------------|--------|----------------|------------|
|                                                        |   | 2010           |       |   | 2009 |   |
|                                                        |   | (In thousands) |       |
| Loans analyzed for impairment                               |   |           |       |   |   |   |
|      without a valuation allowance |   | $              | 28,171,248 |   |   | $ | 14,486,555 |   |
| Loans analyzed for impairment                               |   |           |       |   |   |   |   |   |
|      with a valuation allowance    |   |           | 17,090,793 |   |   |   | 17,807,559 |   |
| Total loans analyzed for impairment                         |   | $              | 45,262,041 |   |   | $ | 32,294,114 |   |
| Valuation allowance related analysis                        |   |           |       |   |   |   |   |   |
|      of loans for impairment       |   | $              | 2,879,000  |   |   | $ | 1,961,835 |   |
|                                                        |   |           |       |   |   |   |   |   |

----

|                                     |   |           |   |   |    |   |   |      |   |   | Average    |   |   | Interest   |   |
|------------------------------------------|--------|----------------|--------|--------|---------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
|                                     |   |           |   |   |    |   |   |      |   |   | Recorded   |   |   | Income     |   |
|                                     |   | Recorded       |   |   | Unpaid  |   |   | Related   |   |   | Investment |   |   | Recognized |   |
|                                     |   | Investment     |   |   | Balance |   |   | Allowance |   |   | YTD        |   |   | YTD        |   |
|                                     |   | (In thousands) |   |
| Loans analyzed for                       |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |
|   impairment with              |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |
|   no related allowance:        |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |
| Commercial, financial, and agricultural  |   | $              | 623    |   |    | $      | 623    |      |   | $      | -          |   |   | $          | 580    |   |   | $ | 29 |   |
| Real estate-construction and development |   |           | 19,055 |   |    |   | 19,055 |      |   |   | -          |   |   |       | 20,360 |   |   |   | 762 |   |
| Real estate-mortgage                     |   |           | 9,662  |   |    |   | 9,662  |      |   |   | -          |   |   |       | 9,759  |   |   |   | 377 |   |
| Installment loans and other              |   |           | -      |   |    |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Total                                    |   | $              | 29,340 |   |    | $      | 29,340 |      |   | $      | -          |   |   | $          | 30,699 |   |   | $ | 1,168 |   |
| Loans analyzed for                       |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
|   impairment with              |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
|   a related allowance:         |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial, financial, and agricultural  |   | $              | 327    |   |    | $      | 347    |      |   | $      | 8          |   |   | $          | 338    |   |   | $ | 12 |   |
| Real estate-construction and development |   |           | 10,861 |   |    |   | 10,861 |      |   |   | 1,667      |   |   |       | 10,788 |   |   |   | 364 |   |
| Real estate-mortgage                     |   |           | 4,706  |   |    |   | 4,982  |      |   |   | 1,203      |   |   |       | 4,784  |   |   |   | 192 |   |
| Installment loans and other              |   |           | 28     |   |    |   | 28     |      |   |   | 1          |   |   |       | 31     |   |   |   | 1 |   |
| Total                                    |   | $              | 15,922 |   |    | $      | 16,218 |      |   | $      | 2,879      |   |   | $          | 15,941 |   |   | $ | 569 |   |
| Total loans analyzed for                 |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
|    impairment:            |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial, financial, and agricultural  |   | $              | 950    |   |    | $      | 970    |      |   | $      | 8          |   |   | $          | 918    |   |   | $ | 41 |   |
| Real estate-construction and development |   |           | 29,916 |   |    |   | 29,916 |      |   |   | 1,667      |   |   |       | 31,148 |   |   |   | 1,126 |   |
| Real estate-mortgage                     |   |           | 14,368 |   |    |   | 14,644 |      |   |   | 1,203      |   |   |       | 14,543 |   |   |   | 569 |   |
| Installment loans and other              |   |           | 28     |   |    |   | 28     |      |   |   | 1          |   |   |       | 31     |   |   |   | 1 |   |
| Total Impaired Loans                     |   | $              | 45,262 |   |    | $      | 45,558 |      |   | $      | 2,879      |   |   | $          | 46,640 |   |   | $ | 1,737 |   |
|                                     |   |           |   |   |    |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |

----

|                               |   |           |   |   | 90 Days + |     |   |        |   |   |     |   |   |   |   |
|------------------------------------|--------|----------------|--------|--------|-----------|----------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
|                               |   |           | 30-89  |   |      | Past Due |   |        |   |   |     |   |   |   |   |   |
|                               |   | Days Past      |   |   | and Still |     |   | Non-Accrual |   |   | Total    |   |   | Total  |   |
|                               |   | Due            |   |   | Accruing  |     |   | Loans       |   |   | Past Due |   |   | Loans  |   |
|                               |   | (In thousands) |   |   |      |     |   |        |   |   |     |   |
|                               |   |           |   |   |      |     |   |        |   |   |     |   |   |   |   |   |
| Commercial, financial              |   | $              | 238    |   |      | $        | 29     |        |   | $      | 326      |   |   | $      | 593    |   |   | $ | 33,347 |   |
|    and agricultural |   |           |   |   |      |     |   |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Real estate - construction         |   |           |   |   |      |     |   |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    and development  |   |           | 1,016  |   |      |     | -      |        |   |   | 3,856    |   |   |   | 4,872  |   |   |   | 56,673 |   |
| Real estate - mortgage             |   |           | 2,070  |   |      |     | -      |        |   |   | 5,237    |   |   |   | 7,307  |   |   |   | 134,964 |   |
| Installment loans to individuals   |   |           | 842    |   |      |     | -      |        |   |   | 165      |   |   |   | 1,007  |   |   |   | 20,186 |   |
| Other                              |   |           | 67     |   |      |     | 34     |        |   |   | -        |   |   |   | 101    |   |   |   | 2,594 |   |
| Total                              |   | $              | 4,233  |   |      | $        | 63     |        |   | $      | 9,584    |   |   | $      | 13,880 |   |   | $ | 247,764 |   |
|                               |   |           |   |   |      |     |   |        |   |   |     |   |   |   |   |   |   |   |   |   |

----

|                                       |   | Real Estate      |   |   |        |   |    | Installment |   |   | Commercial,     |   |   |   |   |
|--------------------------------------------|--------|------------------|--------|--------|-------------|--------|---------|-------------|--------|--------|-----------------|--------|--------|--------|--------|
|                                       |   | Commercial & |   |   | Real Estate |   |    | and         |   |   | Financial       |   |   |   |   |
|                                       |   | Development      |   |   | Mortgage    |   |    | Other       |   |   | and Agriculture |   |   | Total  |   |
|                                       |   | (In thousands)   |   |
| Pass                                       |   | $                | 15,545 |   |        | $      | 107,179 |        |   | $      | 21,514          |   |   | $      | 24,098 |   |   | $ | 168,336 |   |
| Special Mention                            |   |             | 10,261 |   |        |   | 10,329  |        |   |   | 643             |   |   |   | 7,811  |   |   |   | 29,044 |   |
| Substandard                                |   |             | 30,867 |   |        |   | 17,456  |        |   |   | 623             |   |   |   | 1,443  |   |   |   | 50,389 |   |
| Doubtful                                   |   |             | -      |   |        |   | -       |        |   |   | -               |   |   |   | -      |   |   |   | - |   |
|   Subtotal                       |   |             | 56,673 |   |        |   | 134,964 |        |   |   | 22,780          |   |   |   | 33,352 |   |   |   | 247,769 |   |
| Less:                                      |   |             |   |   |        |   |    |        |   |   |            |   |   |   |   |   |   |   |   |   |
|     Unearned Discount  |   |             | -      |   |        |   | -       |        |   |   | -               |   |   |   | 5      |   |   |   | 5 |   |
| Loans, net of  unearned discount |   | $                | 56,673 |   |        | $      | 134,964 |        |   | $      | 22,780          |   |   | $      | 33,347 |   |   | $ | 247,764 |   |
|                                       |   |             |   |   |        |   |    |        |   |   |            |   |   |   |   |   |   |   |   |   |

----

|                                           | Estimated Useful    | December 31,                        |
|------------------------------------------------|---------------------|-------------------------------------|
|                                           |  Life in Years | 2010                                | 2009 |
|                                           |                |                                |   |   |
| Land                                           |  -             |  $  7,439            |  $  7,439 |
| Buildings and improvements                     | 10 - 40             |    18,186            |    18,144 |
| Furniture and equipment                        | 3 - 10              |      7,267 |      7,245 |
|                                           |                |                                |    32,892 |    32,828 |
| Less accumulated depreciation and amortization |                |                                |     (9,970) |     (8,920) |
|                                           |                |                                |   |   |
|                                           |                |                                |  $ 22,922 |  $ 23,908 |
|                                           |                |                                |   |   |

|   |   |   | Year       |                                 | Amount                                                    |
|--------|--------|--------|------------|--------------------------------------|-----------------------------------------------------------|
|   |   |   | 2011       |                                 |  $135,949                                            |
|   |   |   | 2012       |                                 |        5,487           |
|   |   |   | 2013       |                                 |          902 |
|   |   |   | 2014       |                                 |        1,454           |
|   |   |   | 2015       |                                 |        1,798           |
|   |   |   | Thereafter |      13,397 |
|   |   |   |       |                                 |                                                      |
|   |   |   |       |                                 |  $158,987                                            |
|   |   |   |       |                                 |                                                      |

----

|                       |   |   |   |  December 31,                                                    |
|----------------------------|--------|--------|--------|-----------------------------------------------------------------------|
|                       |   |   |   | 2010                                                                  | 2009 |
|                       |   |   |   |  (In thousands)                                                  |
|                       |   |   |   |                                                                  |   |
| FHLB Advances              |   |   |   |  $    26,127                                 |  $    27,909 |
| Treasury tax and loan note |   |   |   |            843 |         1,003 |
|                       |   |   |   |                                                                  |   |
|                       |   |   |   |  $    26,970                                 |  $    28,912 |
|                       |   |   |   |                                                                  |   |

----

|   |   |   |  Year |   |  Amount                                                                            |
|--------|--------|--------|------------|--------|-----------------------------------------------------------------------------------------|
|   |   |   |       |   | (In thousands)                                                                          |
|   |   |   | 2011       |   |  $         1,819                      |
|   |   |   | 2012       |   |             9,857           |
|   |   |   | 2013       |   |             2,447           |
|   |   |   | 2014       |   |               681 |
|   |   |   | 2015       |   |             2,179           |
|   |   |   | Thereafter |   |             9,144           |
|   |   |   |       |   |                                                                                    |
|   |   |   |       |   |  $       26,127                                 |
|   |   |   |       |   |                                                                                    |

----

|                                      |   | Years Ended December 31, |   |
|-------------------------------------------|--------|--------------------------|--------|
|                                      |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                      |   | (In thousands)           |   |
| Net change in unrealized gains on         |   |                     |   |   |   |   |   |   |   |
| available-for-sale securities             |   | $                        | 86     |   |   | $ | 839 |   |   | $ | 571 |   |
| Reclassification adjustment for net       |   |                     |   |   |   |   |   |   |   |   |   |   |
| (gains) realized in income                |   |                     | (11    | ) |   |   | (20 | ) |   |   | (13 | ) |
| Net unrealized gains                      |   |                     | 75     |   |   |   | 819 |   |   |   | 558 |   |
| Tax effect                                |   |                     | (28    | ) |   |   | (306 | ) |   |   | (208 | ) |
|                                      |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net change in unrealized gains on         |   |                     |   |   |   |   |   |   |   |   |   |   |
| securities available-for-sale, net of tax |   | $                        | 47     |   |   | $ | 513 |   |   | $ | 350 |   |
|                                      |   |                     |   |   |   |   |   |   |   |   |   |   |

|                      |   | Years Ended December 31, |   |
|---------------------------|--------|--------------------------|--------|
|                      |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                      |   | (In thousands)           |   |
|                      |   |                     |   |   |   |   |   |   |   |
| Current:                  |   |                     |   |   |   |   |   |   |   |
|    Federal |   | $                        | 241    |   |   | $ | (1,040 | ) |   | $ | (2,896 | ) |
|    State   |   |                     | 51     |   |   |   | (203 | ) |   |   | (410 | ) |
| Deferred                  |   |                     | (548   | ) |   |   | 715 |   |   |   | 2,284 |   |
|                      |   |                     |   |   |   |   |   |   |   |   |   |   |
|                      |   | $                        | (256   | ) |   | $ | (528 | ) |   | $ | (1,022 | ) |
|                      |   |                     |   |   |   |   |   |   |   |   |   |   |

----

|                                                         |   | Years Ended December 31, |   |
|--------------------------------------------------------------|--------|--------------------------|--------|
|                                                         |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                         |   | (In thousands)           |   |
| Tax (benefit)on income before income taxes                   |   | $                        | 356    |   |   | $ | 92 |   |   | $ | (285 | ) |
|                                                         |   |                     |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) resulting from:                          |   |                     |   |   |   |   |   |   |   |   |   |   |
|    Tax-exempt income                          |   |                     | (630   | ) |   |   | (548 | ) |   |   | (599 | ) |
|    Disallowed interest expense                |   |                     | 30     |   |   |   | 30 |   |   |   | 47 |   |
|    State income taxes, net of federal benefit |   |                     | 34     |   |   |   | (134 | ) |   |   | (271 | ) |
|    Other, net                                 |   |                     | (46    | ) |   |   | 32 |   |   |   | 86 |   |
|                                                         |   | $                        | (256   | ) |   | $ | (528 | ) |   | $ | (1,022 | ) |
|                                                         |   |                     |   |   |   |   |   |   |   |   |   |   |

|                                                   |   | December 31,   |   |
|--------------------------------------------------------|--------|----------------|--------|
|                                                   |   | 2010           |   |   | 2009 |   |
|                                                   |   | (In thousands) |   |
| Deferred tax assets:                                   |   |           |   |   |   |   |
|    Other real estate expenses           |   |           |   |   |   |   |
|       and writedowns     |   | $              | 651    |   |   | $ | - |   |
|    Other                                |   |           | 105    |   |   |   | 91 |   |
|                                                   |   |           | 756    |   |   |   | 91 |   |
| Deferred tax liabilities:                              |   |           |   |   |   |   |   |   |
|    Allowance for loan losses            |   |           | (175   | ) |   |   | (222 | ) |
|    Premises and equipment               |   |           | (1,367 | ) |   |   | (1,304 | ) |
|    Unrealized gain on securities        |   |           |   |   |   |   |   |   |
|       available for sale |   |           | (735   | ) |   |   | (707 | ) |
|    Intangible asset                     |   |           | (949   | ) |   |   | (849 | ) |
|    Other                                |   |           | (314   | ) |   |   | (314 | ) |
|                                                   |   |           | (3,540 | ) |   |   | (3,396 | ) |
| Net deferred tax asset (liability)                     |   | $              | (2,784 | ) |   | $ | (3,305 | ) |
|                                                   |   |           |   |   |   |   |   |   |

----

|                         |   | Contractual Amount |   |
|------------------------------|--------|--------------------|--------|
|                         |   | 2010               |   |   | 2009 |   |
|                         |   | (In thousands)     |   |
|                         |   |               |   |   |   |   |
| Commitments to extend credit |   | $                  | 14,890 |   |   | $ | 18,146 |   |
| Credit card arrangements     |   |               | 2,571  |   |   |   | 2,555 |   |
| Letters of credit            |   |               | 10,533 |   |   |   | 10,469 |   |

----

|   |   |   |   |                           |
|--------|--------|--------|--------|--------------------------------|
|   |   | Year   |   | Amount                         |
|   |   |   |   |                           |
|   |   | 2011   |   |  $ 10,200                 |
|   |   | 2012   |   |     10,200 |
|   |   |   |   |  $ 20,400                 |
|   |   |   |   |                           |

----

----

|                                |   | Security Capital |   |   |   |   |   |   |   |
|-------------------------------------|--------|------------------|--------|--------|--------|--------|--------|--------|--------|
|                                |   | Corporation      |   |   |   |   |   |   |   |
|                                |   | (Consolidated)   |   |   | Bank   |   |
|                                |   | Amount           |   |   | Ratio  |   |   | Amount |   |   | Ratio |   |
|                                |   | (In thousands)   |   |
| December 31, 2010                   |   |             |   |   |   |   |   |   |   |   |   |   |
|    Total risk-based  |   | $                | 70,745 |   |   |   | 22.5   | %      |   | $ | 55,487 |   |   |   | 18.5 | % |
|    Tier 1 risk-based |   |             | 66,803 |   |   |   | 21.2   | %      |   |   | 51,724 |   |   |   | 17.2 | % |
|    Tier 1 leverage   |   |             | 66,803 |   |   |   | 13.0   | %      |   |   | 51,724 |   |   |   | 10.3 | % |
|                                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total risk-based  |   | $                | 71,834 |   |   |   | 21.8   | %      |   | $ | 54,378 |   |   |   | 17.4 | % |
|    Tier 1 risk-based |   |             | 67,717 |   |   |   | 20.6   | %      |   |   | 50,454 |   |   |   | 16.1 | % |
|    Tier 1 leverage   |   |             | 67,717 |   |   |   | 14.3   | %      |   |   | 50,454 |   |   |   | 10.8 | % |
|                                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                |   | Security Capital |   |   |   |   |   |   |   |
|-------------------------------------|--------|------------------|--------|--------|--------|--------|--------|--------|--------|
|                                |   | Corporation      |   |   |   |   |   |   |   |
|                                |   | (Consolidated)   |   |   | Bank   |   |
|                                |   | Amount           |   |   | Ratio  |   |   | Amount |   |   | Ratio |   |
|                                |   | (In thousands)   |   |
| December 31, 2010                   |   |             |   |   |   |   |   |   |   |   |   |   |
|    Total risk-based  |   | $                | 25,189 |   |   |   | 8.0    | %      |   | $ | 24,049 |   |   |   | 8.0 | % |
|    Tier 1 risk-based |   |             | 12,594 |   |   |   | 4.0    | %      |   |   | 12,025 |   |   |   | 4.0 | % |
|    Tier 1 leverage   |   |             | 20,587 |   |   |   | 4.0    | %      |   |   | 20,082 |   |   |   | 4.0 | % |
|                                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total risk-based  |   | $                | 26,365 |   |   |   | 8.0    | %      |   | $ | 25,077 |   |   |   | 8.0 | % |
|    Tier 1 risk-based |   |             | 13,182 |   |   |   | 4.0    | %      |   |   | 12,539 |   |   |   | 4.0 | % |
|    Tier 1 leverage   |   |             | 18,932 |   |   |   | 4.0    | %      |   |   | 18,663 |   |   |   | 4.0 | % |

----

----

|                                            |   | December 31, 2010 |    |   | December 31, 2009 |   |
|-------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                            |   | Carrying          |    |   | Estimated         |   |   | Carrying |   |   | Estimated |   |
|                                            |   | Amount            |    |   | Fair Value        |   |   | Amount |   |   | Fair Value |   |
|                                            |   | (In thousands)    |    |   | (In thousands)    |   |
| Financial assets:                               |   |              |    |   |              |   |   |   |   |   |   |   |
|    Cash and cash equivalents     |   | $                 | 15,264  |   |              | $      | 15,264 |   |   | $ | 17,045 |   |   | $ | 17,045 |   |
|    Federal funds sold            |   |              | 31,270  |   |              |   | 31,269 |   |   |   | 20,550 |   |   |   | 20,549 |   |
|    Certificates of deposit with  |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|       other banks |   |              | 1,778   |   |              |   | 1,778 |   |   |   | 296 |   |   |   | 296 |   |
|    Securities available-for-sale |   |              | 124,447 |   |              |   | 124,447 |   |   |   | 109,466 |   |   |   | 109,466 |   |
|    Securities held-to-maturity   |   |              | 33,095  |   |              |   | 32,541 |   |   |   | 14,759 |   |   |   | 14,781 |   |
|    Securities, other             |   |              | 1,933   |   |              |   | 1,933 |   |   |   | 2,223 |   |   |   | 2,223 |   |
|    Loans                         |   |              | 247,764 |   |              |   | 249,898 |   |   |   | 266,611 |   |   |   | 269,134 |   |
| Financial liabilities:                          |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing deposits  |   |              | 74,022  |   |              |   | 58,013 |   |   |   | 61,673 |   |   |   | 61,673 |   |
|    Interest-bearing deposits     |   |              | 334,721 |   |              |   | 318,760 |   |   |   | 321,827 |   |   |   | 295,271 |   |
|    FHLB and other borrowings     |   |              | 26,970  |   |              |   | 28,671 |   |   |   | 28,912 |   |   |   | 31,206 |   |
|                                            |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |

| ·   | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

|                          |   | Quoted    |   |   | Models with |   |    | Models with  |   |   | Carrying |   |
|-------------------------------|--------|-----------|--------|--------|-------------|--------|---------|--------------|--------|--------|----------|--------|
|                          |   | market    |   |   | significant |   |    | significant  |   |   | value    |   |
|                          |   | prices in |   |   | observable  |   |    | unobservable |   |   | in the   |   |
|                          |   | active    |   |   | market      |   |    | market       |   |   | Balance  |   |
|                          |   | markets   |   |   | parameters  |   |    | parameters   |   |   | Sheet    |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |
|                          |   | Level 1   |   |   | Level 2     |   |    | Level 3      |   |   | Total    |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |
| December 31, 2010:            |   |      |   |   |        |   |    |         |   |   |     |   |
| Available-for-sale securities |   | $         | -      |   |        | $      | 124,447 |         |   | $      | -        |   |   | $ | 124,447 |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
|                          |   | Quoted    |   |   | Models with |   |    | Models with  |   |   | Carrying |   |
|                          |   | market    |   |   | significant |   |    | significant  |   |   | value    |   |
|                          |   | prices in |   |   | observable  |   |    | unobservable |   |   | in the   |   |
|                          |   | active    |   |   | market      |   |    | market       |   |   | Balance  |   |
|                          |   | markets   |   |   | parameters  |   |    | parameters   |   |   | Sheet    |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
|                          |   | Level 1   |   |   | Level 2     |   |    | Level 3      |   |   | Total    |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
| December 31, 2009:            |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |
| Available-for-sale securities |   | $         | -      |   |        | $      | 109,466 |         |   | $      | -        |   |   | $ | 109,466 |   |
|                          |   |      |   |   |        |   |    |         |   |   |     |   |   |   |   |   |

----

----

| December 31, 2010       |   |       |   |   |      |   |   |        |   |   |         |   |
|-------------------------|--------|------------|--------|--------|-----------|--------|--------|-------------|--------|--------|--------------|--------|
|                    |   | Carrying   |   |   | Quoted    |   |   | Models with |   |   | Models with  |   |
|                    |   | value      |   |   | market    |   |   | significant |   |   | significant  |   |
|                    |   | in the     |   |   | prices in |   |   | observable  |   |   | unobservable |   |
|                    |   | Balance    |   |   | active    |   |   | market      |   |   | market       |   |
|                    |   | Sheet      |   |   | markets   |   |   | parameters  |   |   | parameters   |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |
|                    |   | Fair Value |   |   | Level 1   |   |   | Level 2     |   |   | Level 3      |   |
| Impaired Loans          |   | $          | 17,091 |   |      | $      | -      |        |   | $      | -            |   |   | $ | 17,091 |   |
| Other real estate owned |   |       | 8,233  |   |      |   | -      |        |   |   | -            |   |   |   | 8,233 |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
| December 31, 2009       |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
|                    |   | Carrying   |   |   | Quoted    |   |   | Models with |   |   | Models with  |   |
|                    |   | value      |   |   | market    |   |   | significant |   |   | significant  |   |
|                    |   | in the     |   |   | prices in |   |   | observable  |   |   | unobservable |   |
|                    |   | Balance    |   |   | active    |   |   | market      |   |   | market       |   |
|                    |   | Sheet      |   |   | markets   |   |   | parameters  |   |   | parameters   |   |
|                    |   |       |   |   |      |   |   |        |   |   |         |   |   |   |   |   |
|                    |   | Fair Value |   |   | Level 1   |   |   | Level 2     |   |   | Level 3      |   |
| Impaired Loans          |   | $          | 17,808 |   |      | $      | -      |        |   | $      | -            |   |   | $ | 17,808 |   |
| Other real estate owned |   |       | 11,664 |   |      |   | -      |        |   |   | -            |   |   |   | 11,664 |   |

----

| BALANCE SHEET                        |   |
|--------------------------------------|--------|
|                                 |   |   |   |   |   |   |
|                                 |   | December 31, |   |
|                                 |   | 2010 |   |   | 2009 |   |
|                                 |   | (In thousands) |   |
| Assets                               |   |   |   |   |   |   |
| Cash and cash equivalents            |   | $ | 1,352 |   |   | $ | 2,571 |   |
| Investment in subsidiaries           |   |   | 57,602 |   |   |   | 56,227 |   |
| Loans                                |   |   | 2,988 |   |   |   | 6,539 |   |
| Other real estate                    |   |   | 10,386 |   |   |   | 8,276 |   |
| Other assets                         |   |   | 327 |   |   |   | 13 |   |
|                                 |   | $ | 72,655 |   |   | $ | 73,626 |   |
| Liabilities and Shareholders' Equity |   |   |   |   |   |   |   |   |
| Accrued payables                     |   | $ | 78 |   |   | $ | 182 |   |
| Other liabilities                    |   |   | 664 |   |   |   | 664 |   |
| Shareholders' equity                 |   |   | 71,913 |   |   |   | 72,780 |   |
|                                 |   | $ | 72,655 |   |   | $ | 73,626 |   |
|                                 |   |   |   |   |   |   |   |   |

----

| INCOME STATEMENT                                         |   |
|----------------------------------------------------------|--------|
|                                                     |   |   |   |   |   |   |   |   |   |
|                                                     |   | Years Ended December 31, |   |
|                                                     |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                     |   | (In thousands) |   |
|                                                     |   |   |   |   |   |   |   |   |   |
| Income                                                   |   |   |   |   |   |   |   |   |   |
| Dividends (including from subsidiary)                    |   | $ | 777 |   |   | $ | 780 |   |   | $ | 788 |   |
| Other                                                    |   |   | 127 |   |   |   | 74 |   |   |   | 97 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | 904 |   |   |   | 854 |   |   |   | 885 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses (total)                                         |   |   | 1,332 |   |   |   | 349 |   |   |   | 279 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes and equity in          |   |   |   |   |   |   |   |   |   |   |   |   |
|    undistributed earnings of subsidiaries |   |   | (428 | ) |   |   | 505 |   |   |   | 606 |   |
| Income tax benefit                                       |   |   | 447 |   |   |   | 99 |   |   |   | 61 |   |
| Income before equity in undistributed earnings           |   |   |   |   |   |   |   |   |   |   |   |   |
|    of subsidiaries                        |   |   | 19 |   |   |   | 604 |   |   |   | 667 |   |
| Equity in undistributed earnings of subsidiaries         |   |   |   |   |   |   |   |   |   |   |   |   |
|    in excess of (less than) dividends     |   |   | 1,283 |   |   |   | 194 |   |   |   | (484 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                               |   | $ | 1,302 |   |   | $ | 798 |   |   | $ | 183 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |

----

| STATEMENT OF CASH FLOWS                                 |   |
|---------------------------------------------------------|--------|
|                                                    |   |   |   |   |   |   |   |   |   |
|                                                    |   | Years Ended December 31, |   |
|                                                    |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                    |   |   |   |   | (In thousands) |   |   |   |   |
| Cash Flows from Operating Activities                    |   |   |   |   |   |   |   |   |   |
| Net income                                              |   | $ | 1,302 |   |   | $ | 798 |   |   | $ | 183 |   |
| Equity in subsidiaries' undistributed (earnings) losses |   |   | (1,283 | ) |   |   | (194 | ) |   |   | 484 |   |
| Provision for loan losses                               |   |   | 271 |   |   |   | - |   |   |   | - |   |
| Other real estate writedown                             |   |   | 602 |   |   |   | - |   |   |   | - |   |
| Deferred income tax benefit                             |   |   | (303 | ) |   |   | - |   |   |   | - |   |
| Loss on sale of other real estate                       |   |   | 53 |   |   |   | - |   |   |   | - |   |
| Other, net                                              |   |   | (90 | ) |   |   | 219 |   |   |   | (80 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash provided by operating activities               |   |   | 552 |   |   |   | 823 |   |   |   | 587 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows From Investing Activities                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of assets                                     |   |   | (281 | ) |   |   | (14,861 | ) |   |   | - |   |
| Proceeds from sale of other assets                      |   |   | 167 |   |   |   | - |   |   |   | 1,924 |   |
| Other, net                                              |   |   | 629 |   |   |   | 81 |   |   |   | 184 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) investing activities     |   |   | 515 |   |   |   | (14,780 | ) |   |   | 2,108 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows From Financing Activities                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid on common stock                          |   |   | (1,442 | ) |   |   | (1,441 | ) |   |   | (1,441 | ) |
| Dividends paid on preferred stock                       |   |   | (845 | ) |   |   | (354 | ) |   |   | - |   |
| Proceeds from issuance of preferred stock               |   |   | - |   |   |   | 17,388 |   |   |   | - |   |
| Repayment of debit obligations                          |   |   | - |   |   |   | - |   |   |   | (750 | ) |
| Other, net                                              |   |   | 1 |   |   |   | (123 | ) |   |   | 23 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash used in financing activities                   |   |   | (2,286 | ) |   |   | 15,470 |   |   |   | (2,168 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents    |   |   | (1,219 | ) |   |   | 1,513 |   |   |   | 527 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year          |   |   | 2,571 |   |   |   | 1,058 |   |   |   | 531 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                |   | $ | 1,352 |   |   | $ | 2,571 |   |   | $ | 1,058 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                            |   | Three Months Ended                    |      |
|-----------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                            |   | Mar. 31                               |      |   | Jun. 30 |   |   | Sept. 30 |   |   | Dec. 31 |   |
|                                                            |   | (In thousands, except per share data) |      |
|                                                            |   |                                  |      |   |   |   |   |   |   |   |   |   |
| 2010                                                            |   |                                  |      |   |   |   |   |   |   |   |   |   |
| Total interest income                                           |   | $                                     | 4,873     |   |   | $ | 5,050 |   |   | $ | 5,010 |   |   | $ | 4,852 |   |
| Total interest expense                                          |   |                                  | 1,051     |   |   |   | 1,100 |   |   |   | 1,060 |   |   |   | 1,065 |   |
|    Net interest income                           |   |                                  | 3,822     |   |   |   | 3,950 |   |   |   | 3,950 |   |   |   | 3,787 |   |
| Provision for loan losses                                       |   |                                  | 276       |   |   |   | 576 |   |   |   | 376 |   |   |   | 1,097 |   |
|   Net interest income after provision for loan losses |   |                                  | 3,546     |   |   |   | 3,374 |   |   |   | 3,574 |   |   |   | 2,690 |   |
| Total noninterest income, excluding securities gains            |   |                                  | 1,494     |   |   |   | 1,566 |   |   |   | 1,753 |   |   |   | 1,531 |   |
| Securities gains                                                |   |                                  | -         |   |   |   | 5 |   |   |   | 5 |   |   |   | 1 |   |
| Total noninterest expenses                                      |   |                                  | 4,414     |   |   |   | 4,004 |   |   |   | 5,176 |   |   |   | 4,899 |   |
| Income taxes (benefit)                                          |   |                                  | 11        |   |   |   | 197 |   |   |   | (136 | ) |   |   | (328 | ) |
|                                                            |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                               |   |                                  | 615       |   |   |   | 744 |   |   |   | 292 |   |   |   | (349 | ) |
|                                                            |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred dividends                                             |   |                                  | 289       |   |   |   | 280 |   |   |   | 293 |   |   |   | 152 |   |
|                                                            |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) applicable to common                          |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    shareholders                                  |   | $                                     | 326       |   |   | $ | 464 |   |   | $ | (1 | ) |   | $ | (501 | ) |
|                                                            |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share:  (1)                                       |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income (loss) per common shareholders     |   | $                                     | 0.11      |   |   | $ | 0.16 |   |   | $ | (0.00 | ) |   | $ | (0.17 | ) |
|    Cash dividends declared                       |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | 0.50 |   |
|                                                            |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Restated for stock dividends, if applicable                 |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Shares                                         |   |                                  | 2,883,159 |   |   |   | 2,883,159 |   |   |   | 2,883,159 |   |   |   | 2,883,190 |   |

----

|                                                                  |   | Three Months Ended                    |      |
|-----------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                  |   | Mar. 31                               |      |   | Jun. 30 |   |   | Sept. 30 |   |   | Dec. 31 |   |
|                                                                  |   | (In thousands, except per share data) |      |
|                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |
| 2009                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |
| Total interest income                                                 |   | $                                     | 5,468     |   |   | $ | 5,434 |   |   | $ | 5,058 |   |   | $ | 5,107 |   |
| Total interest expense                                                |   |                                  | 1,354     |   |   |   | 1,379 |   |   |   | 1,313 |   |   |   | 1,327 |   |
|    Net interest income                                 |   |                                  | 4,114     |   |   |   | 4,055 |   |   |   | 3,745 |   |   |   | 3,780 |   |
| Provision for loan losses                                             |   |                                  | 778       |   |   |   | 1,490 |   |   |   | 478 |   |   |   | 1,165 |   |
|    Net interest income after provision for loan losses |   |                                  | 3,336     |   |   |   | 2,565 |   |   |   | 3,267 |   |   |   | 2,615 |   |
| Total noninterest income, excluding securities gains                  |   |                                  | 1,672     |   |   |   | 1,990 |   |   |   | 1,719 |   |   |   | 1,223 |   |
| Securities gains                                                      |   |                                  | -         |   |   |   | 11 |   |   |   | 9 |   |   |   | - |   |
| Total noninterest expenses                                            |   |                                  | 4,398     |   |   |   | 4,846 |   |   |   | 4,380 |   |   |   | 4,513 |   |
| Income taxes (benefit)                                                |   |                                  | 56        |   |   |   | (80 | ) |   |   | 14 |   |   |   | (518 | ) |
|                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                     |   |                                  | 554       |   |   |   | (200 | ) |   |   | 601 |   |   |   | (157 | ) |
|                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred dividends                                                   |   |                                  | -         |   |   |   | 10 |   |   |   | 289 |   |   |   | 286 |   |
|                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) applicable to common                                |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    shareholders                                        |   | $                                     | 554       |   |   | $ | (210 | ) |   | $ | 312 |   |   | $ | (443 | ) |
|                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share:  (1)                                             |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income (loss) per common shareholders           |   | $                                     | 0.19      |   |   | $ | (0.07 | ) |   | $ | 0.11 |   |   | $ | (0.16 | ) |
|    Cash dividends declared                             |   |                                  | -         |   |   |   | - |   |   |   | - |   |   |   | 0.50 |   |
|                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Restated for stock dividends, if applicable                       |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Shares                                               |   |                                  | 2,882,697 |   |   |   | 2,882,945 |   |   |   | 2,883,050 |   |   |   | 2,883,137 |   |

----

----

----

----

----

| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
|----------|--------------------------------------------|

| (a)   | Independent Registered Public Accountants’ Report |
|-----------------|---------------------------------------------------------|

| (b)   | Consolidated Financial Statements – See the Financial Statements included in Item 8. |
|-----------------|--------------------------------------------------------------------------------------------|

| (c)   | Financial Statement Schedules – Financial statement schedules are omitted for the reason that they are not required or are not applicable, or the required information is included in the financial statements. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Exhibits – The exhibits filed as part of this Annual Report on Form 10-K are identified in the Exhibit Index, which Exhibit Index specifically identifies those exhibits that describe or evidence all management contracts and compensation plans or arrangements required to be filed as exhibits to this report.  Such Exhibit Index is incorporated herein by reference. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date: March 15, 2011 | By   /s/ Frank West |
|----------------------|-------------------------------|

----

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   |   | /s/ Larry Pratt, Director |
|--------|--------|---------------------------|

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   | /s/ Frank West, Director |
|--------|--------------------------|

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   | /s/ Laney Funderburk, Director |
|--------|--------------------------------|

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   | /s/ Joe Brown, Director |
|--------|-------------------------|

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   | /s/ Ben Smith, Director |
|--------|-------------------------|

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   | /s/ Ken Murphree, Director |
|--------|----------------------------|

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   | /s/ Will Hays, Director |
|--------|-------------------------|

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   | /s/ Tony Jones, Director |
|--------|--------------------------|

|   | DATE: | March 15, 2011 |
|--------|-------|----------------|

|   | /s/ John Mothershed, Director |
|--------|-------------------------------|

----

| Exhibit Index |
|---------------|
|          |   |   |
|          |   | Reference to |
|          |   | Prior Filing or |
| Exhibit       |   | Exhibit Number |
|  Number  |  Document |  Attached Hereto |
| 3.1           | Registrant's Articles of Incorporation | * |
|          |   |   |
| 3.2           | Registrant's Bylaws | * |
|          |   |   |
| 21            | Subsidiaries of the registrant | 21 |
|          |   |   |
| 31.1          | Rule 13a-14(a) Certification of the Company's President | 31.1 |
|          | and Chief Executive Officer |   |
|          |   |   |
| 31.2          | Rule 13a-14(a) Certification of the Company's Chief | 31.2 |
|          | Financial Officer |   |
|          |   |   |
| 32.1          | Section 1350 Certification of the Company’s President | 32.1 |
|          | and Chief Executive Officer |   |
|          |   |   |
| 32.2          | Section 1350 Certification of the Company’s Chief | 32.2 |
|          | Financial Officer  |   |
| 99.1          | Annual Certification Pursuant to 31 C.F.R. §30.15 | 99.1 |
|          | of the Company’s President and Chief Executive Officer |   |
|          |   |   |
| 99.2          | Annual Certification Pursuant to 31 C.F.R. §30.15 | 99.2 |
|          | of the Company’s President and Chief Financial Officer |   |

----